In a push to strengthen the European Union’s economic resilience and competitiveness, Members of the European Parliament (MEPs) on Thursday adopted two annual reports focused on banking union and competition policy. Both documents, approved during the plenary session following debates on Wednesday, highlight strategic recommendations for making the EU’s financial and economic frameworks more dynamic, fair, and fit for future challenges.
Banking Union: Strengthening Lending and Financial Stability
The first report centres on the EU’s banking union, with MEPs calling for a more robust financial system that empowers banks to lend more effectively to businesses and consumers—key drivers of economic growth. They warn that the current banking structure may be constraining banks’ ability to support large-scale investments, and urge the European Commission to review the framework without compromising financial stability.
MEPs also renewed their call for a fully-fledged European Deposit Insurance Scheme (EDIS), noting that despite a decade of progress, the banking union remains incomplete without it. The Parliament highlighted its own 2024 proposal for a new approach to EDIS and encouraged EU member states to overcome long-standing political deadlock on the issue.
Additionally, the report stresses the need to improve the resolution framework for failing banks. MEPs emphasized ensuring sufficient capital buffers (known as MREL requirements) and avoiding reliance on public funds in future bank resolutions.
The report passed with 345 votes in favour, 135 against, and 62 abstentions.
Competition Policy: Tackling Market Power and Supporting Industry
The second report focuses on overhauling competition rules to better align with the evolving economic landscape, especially in digital and high-tech sectors. MEPs urged the Commission to continue reforming state aid rules and to take stronger action against harmful market concentration, particularly in sectors like online advertising, artificial intelligence, and big tech.
Parliamentarians called for a fresh look at the EU Merger Regulation and advocated for stronger tools to address dominant market positions—not just by requiring behavioural changes from companies, but through possible structural reforms. The report also highlights the need for a unified European industrial policy that strengthens the bloc’s long-term competitiveness.
In light of persistently high food prices, MEPs voiced concern about market concentration in food supply chains. They asked the Commission to urgently investigate the role of large buying alliances in shaping food prices and access.
The competition report was adopted with 358 votes in favour, 124 against, and 79 abstentions.
While both reports are non-binding, they serve as key input for the European Commission in shaping future legislative and regulatory initiatives.
