In terms of banking sector integration and competitiveness, the Commission aims to foster a more integrated European banking market. This includes addressing gaps in the current crisis management framework by revising mechanisms for handling mid-sized bank failures. It wants to achieve an ambitious outcome in ongoing negotiations on the Crisis Management and Deposit Insurance (CMDI) framework. It is also firmly committed to safeguarding the competitiveness of internationally active European banks and ensuring a level playing field in European markets vis-à-vis third-country banks.
To succeed, these actions will require both legislative and non-legislative measures at the EU and national levels, with individual Member States responsible for much of the development process. The roadmap is clear and reflects a genuine intention to move forward. However, the success of the initiative will depend on the concrete legislative proposals to come, and it is important to recognize that these changes will take time, given the complexity and duration of the EU’s regulatory processes.
The success of the initiative will depend on the concrete legislative proposals to come, and it is important to recognize that these changes will take time, given the complexity and duration of the EU’s regulatory processes.
The Commission’s initiative certainly comes as welcome news for the European financial system, as it presents a broad yet specific action plan and arrives at a politically opportune moment. However, its success will require close coordination among Member States, especially since key tools—such as tax policy—remain under national jurisdiction. On a positive note, the Commission supports the idea that Member States that reach consensus may move forward more quickly on certain initiatives. That said, the current level of fragmentation within the EU poses a significant hurdle for the full realization of the SIU.
