The European Commission plans integration strategy for financial regulations

The European Commission is preparing a proposal to expand the centralized powers of European institutions over financial markets. The new rules will affect stock and crypto exchanges as well as financial institutions.

The aim is to reduce regulatory fragmentation between member states and strengthen the European Union's competitiveness vis-à-vis the United States.

The Commission plans to create a single supervisory authority modeled on the US Securities and Exchange Commission (SEC). The European Securities and Markets Authority (ESMA) is to be given more powers and will in future supervise the most important cross-border players, such as stock exchanges, crypto service providers, and other financial institutions. In addition, ESMA will resolve disputes between national regulatory authorities in the supervision of large asset managers.

Germany, which has previously rejected centralized supervision, is currently working to reach a common position with France. Luxembourg and Ireland, on the other hand, warn that this could weaken their national financial sectors.

The European Commission plans to present the proposal in December as part of a package to integrate financial markets. The initiative is supported by ECB President Christine Lagarde and former Governor Mario Draghi.

(sie)