The financial sector, particularly banking, is instrumental in making the EU's economy more competitive, as it wields considerable influence over financing and the vital transition towards sustainability. In an opinion adopted during the plenary session, the European Economic and Social Committee (EESC) highlights key ways to reinforce this sector and bolster its contribution to the EU's strategic autonomy and the goals which will help it achieve this.

A resilient financial system is a priority for the EU's economic transformation, but challenges remain despite efforts to incorporate competitiveness checks and refine regulation via REFIT. EESC rapporteur Antonio García del Riego points out that incomplete Banking and Capital Markets Unions are barriers to market unity, causing EU banks to lag behind the global pack. This will have to be addressed by means of thorough evaluations in order to secure a competitive, resilient financial sector. Fair competition is crucial for stability and growth, but it requires stronger regulatory frameworks safeguarding banking sector diversity. The EESC stresses the role played by fair competition in ensuring stability and attracting investment, and calls for a balanced approach to oversight which promotes digitalisation and market sustainability. While commending the EU's inclusion of a competitiveness check in future policies, the EESC points out that competitiveness must be enhanced without diverging from global standards such as Basel III. Aligning this check with financial sector specifics is vital. Completing the Capital Markets Union will combat market fragmentation, enhance financial stability and foster integration. The EESC stresses that effective evaluation methods, stakeholder engagement in impact assessments, and robust data for informed decision making are the key to advancing the sector. (tk)