Adjusting the EU's Regulatory Process and Supervisory Structures
A comprehensive review of the EU’s financial rulemaking process is urgently needed. The framework, originally designed under the Lamfalussy procedure, has expanded beyond its intended scope, raising concerns about regulatory complexity and efficiency. At the same time, the role of the European Supervisory Authorities (ESAs) requires further clarification. Despite their mandate to foster market integration, integration levels are declining, regulatory burdens are increasing and enforcement cases are on the rise. Some degree of streamlining is now essential.
Over the past legislative cycles, the EU has undergone an intense phase of lawmaking, not only refining core prudential and conduct-of-business rules but also introducing far-reaching digital and green regulations affecting financial services. While implementation remains ongoing, various stakeholders have called for a regulatory pause and a thorough evaluation of the effectiveness of these measures. In response, the European Commission President has announced an ‘omnibus legislation’ aimed at reducing regulatory burdens. However, the scope and effectiveness of this initiative remain uncertain.
The fundamental challenge is that the international competitiveness of the EU’s financial sector – both its institutions and markets – has declined, while financial integration has stagnated. Moreover, the new US administration is expected to intensify this challenge, as it pursues a broad deregulatory agenda that could further erode the global standing of EU financial firms. Additionally, critical issues such as platform regulation and the EU-US data adequacy agreement may come under renewed scrutiny, raising concerns about the level playing field, data exchange and storage requirements.
In this competitive landscape, the first priority of the new European Commission should be to take stock of the current regulatory and supervisory framework and assess its impact on European market integration and competitiveness. In a second phase, targeted modifications will be necessary to restore balance between regulation and market efficiency.
Through its task force, CEPS, ECMI and ECRI aim to contribute to this critical review process and support a more coherent regulatory approach for the future.
Agenda
The task force will meet four times over a period of eight to nine months and come out with a report at the end. The suggested agenda is as follows:
- First meeting: EU financial regulation and simplification: what can be achieved (March/April)
- Second meeting: Revisiting the Lamfalussy procedures and structuring the different levels (May/June)
- Third meeting: Adjusting supervisory structures (July/August)
- Fourth meeting: Policy recommendations (September/October)
Organisation
The Chair of the task force will be Jose Antonio Alvarez, Vice Chair of Santander.
The Rapporteurs (CEPS staff) will organise the meetings, conduct research independently and draft the final report.
- Karel Lannoo, CEO of CEPS and General Manager of ECMI
- Apostolos Thomadakis, Head of Research, ECMI; Research Fellow, CEPS
- Judith Arnal, Associate Senior Research Fellow at ECRI and CEPS
Participation
The Task Force members – a group of stakeholders: industry representatives and observers (e.g. academics, policymakers, regulators, supervisory authorities, consumer/investor associations) – will steer the research agenda of the meetings and actively participate at the discussion, together with the chairman. The members will also review the final report and comment on the list of recommendations.
Join the Task Force
To express your interest, please fill the registration form and send it to ecmi@ceps.eu.
Contact us
For further information, please send an e-mail to alice.orlandini@ceps.eu.