Berlin, 17 February – Germany and France have jointly called on the European Commission to swiftly implement an ambitious “Financial Services Simplification Package” aimed at reducing regulatory complexity across Europe’s financial sector. The appeal, contained in a letter obtained by Reuters on Sunday, emphasises that minor adjustments to future legislation will be insufficient; existing rules must also be streamlined to enhance efficiency.
The letter was sent by German Finance Minister Lars Klingbeil and French Finance Minister Roland Lescure to Maria Luís Albuquerque, the European Commissioner for Financial Services. It argues that simplification would strengthen the single financial market and improve the global competitiveness of European institutions.
Key areas highlighted in the proposal include:
Reporting processes – Financial transactions would be reported once, eliminating redundant compliance checks.
Obsolete delegated powers – Unused representative powers would be removed to simplify regulatory frameworks.
Cybersecurity reporting – Reporting burdens on firms would be eased without compromising oversight.
Market operations – Activity would be adjusted based on market practice, enhancing operational flexibility.
Banking supervision – New proposals would be coordinated with the Commission to ensure consistency and regulatory clarity.
The following table summarises the main simplification proposals outlined in the letter:
| Area | Proposed Simplification | Objective |
|---|---|---|
| Reporting Processes | Single reporting; remove redundant checks | Reduce administrative burden for firms |
| Delegated Powers | Abolish unused powers | Simplify regulatory framework |
| Cybersecurity Reporting | Streamlined reporting | Lower administrative pressure |
| Market Operations | Adjust based on market practice | Increase operational agility |
| Banking Supervision | Future coordinated proposals | Ensure effective regulator collaboration |
Analysts suggest that if implemented, these measures could significantly enhance competition within Europe’s financial services sector. By eliminating unnecessary regulatory complexity, smaller and medium-sized firms would find it easier to enter international markets, potentially broadening participation in the EU’s single financial market.
Observers regard the initiative from Germany and France as a potential blueprint for modernising EU financial regulations, offering both efficiency gains and greater competitiveness. Experts predict that the package could provide substantial relief for institutions while easing pressure on customers and investors alike.
Overall, the proposed simplification represents a strategic step towards a more robust, competitive, and effective EU single financial market. By reducing bureaucratic hurdles, it is expected to support long-term economic stability and growth across the European Union, reinforcing the region’s position in the global financial landscape.