Creating a stronger and more integrated European financial supervision for the Capital Markets Union

European consumers, investors and businesses will benefit from stronger and more integrated financial markets, thanks to plans by the Commission to reform the EU’s supervisory architecture.The European Commission is today proposing reforms to pave the way for further financial integration and a full Capital Markets Union, to promote jobs, growth and investments in Europe and to strengthen the Economic and Monetary Union. President Juncker underlined the importance of the Capital Markets Union, one of the Commission’s flagship projects, in his State of the Union Address. The proposals also include steps to foster the development of financial technologies (FinTech) and to make sure that sustainability considerations are systematically taken into account in supervisory practices at the European level. Once adopted, the proposals will improve the mandates, governance and funding of the ESAs for banking (European Banking Authority, EBA), for securities and financial markets (European Securities and Markets Authority, ESMA), and for insurance and pensions (European Insurance and Occupational Pensions Authority, EIOPA). To ensure a uniform application of EU rules and promote a true Capital Markets Union, the proposals also entrust ESMA with direct supervisory power in specific financial sectors. In addition, the Commission is proposing targeted changes to the composition and organisation of the ESRB, which monitors stability risks for the financial system as a whole. For more information, please consult the press release, Q&A and factsheet.