The strategic importance of the EU financial sector-How to improve assessment and evaluation

Background:

As the EU transforms its economy, it values a strong financial system. However, despite efforts like incorporating a competitiveness check in future policies, and initiatives such as the Better Regulation framework under the REFIT programme, challenges persist. Incomplete Banking and Capital Markets Unions hinder market unity, and EU banks lag behind globally. Persistent disparities call for thorough evaluations and enhancements to ensure a competitive and resilient EU financial sector. In an own-initiative opinion, the EESC's Section for Economic and Monetary Union and Economic and Social Cohesion (ECO) advocates for a comprehensive assessment framework. It stresses the importance of synchronized regulations, stakeholder engagement, impact evaluations, and competitiveness assessments for banking sector regulations, which constitute 70% of the total EU funding.

Key points:

In the opinion, the EESC's ECO section

  • emphasizes the importance of ensuring fair competition between foreign and domestic banks for market stability, attracting foreign investment, and evaluating digitalization and funding depth;
  • advocates for a competitiveness check tailored to the specificities of the financial sector and the impact on investment and the real economy, enhanced stakeholder participation in impact assessments, systematic data collection for evaluations, and transparent methodologies for both pre- and post-assessments;
  • urges the prioritization of completing the Capital Markets Union to resolve market fragmentation and harmonization issues, a critical move to bolster EU financial stability and promote integration;

…

Additional information:

- EESC section: Economic and Monetary Union and Economic and Social Cohesion (ECO)
- opinion type: Own-initiative Opinion
- rapporteur: Antonio GARCÍA DEL RIEGO (Employers - GR I / Spain)
- reference: ECO/615-EESC-2023
- referral: N/A
- date of adoption by section: 15/11/2023
- date of adoption in plenary: 13-14/12/2023

Contact:

Thomas Kersten
Press Officer
Tel.: +32 (0) 473 49 49 93
Email: thomas.kersten@eesc.europa.eu
Sergio Lorencio Matallana
Policy Officer
Tel.: +32 2 546 9240
Email: sergio.lorenciomatallana@eesc.europa.eu