One market, many rules: The 28th regime’s challenge in unifying Europe

The 28th regime could see a potential overhaul of Europe’s capital markets that would address key challenges such as financing the green and digital transitions and unlocking private capital. By establishing a streamlined supervisory framework under ESMA, the regime could enhance market integration, reduce fragmentation and foster cross-border investment.

However, it also poses risks, including the possible deepening of market disparities and hindering the broader goals of the Capital Markets Union. For the regime to succeed, it must balance national interests with the need for a cohesive and competitive European financial market that would truly position Europe as a global leader in sustainable finance. 

Apostolos Thomadakis is Head of Research at ECMI and Research Fellow at CEPS. An earlier version of this commentary was published by The TRADE on November 29, 2024.