This contains an annual analysis of integration in the EU financial sector and its impact on competition, efficiency, financial stability and global competitiveness of EU financial markets. It also includes EU financial services policy achievements including AIFMD and remuneration.
The European Commission has published its European Financial Integration Report (EFIR). The report contains an annual analysis of integration in the EU financial sector and its impact on competition, efficiency, financial stability and global competitiveness of EU financial markets. It also includes a progress report on EU financial services policy achievements in 2009.
The financial crisis, and the first signs of recovery, is an inevitable point of departure for the 2009 edition of EFIR. Key issues that are being addressed in the report are:
- Can we expect EU financial integration to continue advancing once financial stability has been restored? (Chapter 2)
- How has the financial crisis impacted on EU financial sector profitability and efficiency?
- What is the expected impact over the medium term?
- How does Europe compare to the United States in terms of financial sector efficiency? (Chapter3)
Has the EU financial sector started to recover from the crisis?
- How have the strong cross-border ties in the EU banking sector impacted on financial stability in home and host countries respectively? (Chapter 4).
The European Union is one of the major global financial players. Financial services policy needs to find the best ways to strengthen competitiveness and to fully reap the benefits of globalisation. The objective is also to strengthen the financial system so it is more able to withstand future financial shocks.
Some of the key questions that EFIR also addresses are:
- What is the relative performance of the EU financial sector when looked at from a global perspective?
- What are the broad financial trends that are likely to shape the future of the financial sector? (Chapter 5)
- How has globalisation and EU financial integration impacted on financial stability?
- How has the work to build a stronger financial system progressed at both EU and international level? (Chapter 6)
Annex I presents the Commission policy achievements in 2009 including:
1. In 2009 and in the wake of the financial crisis the Commission launched a comprehensive review of the EU regulatory and supervisory framework for financial services. This review was based on two Strategic Initiatives included in the Commission Legislative and Work Programme: Financial Markets for the Future Package, which aimed at filling regulatory gaps, and Supervision of EU Financial Markets, which took forward the recommendations of the de Larosière group established in late 2008.
2. Individual policy initiatives aimed at addressing the problems highlighted by the crisis were outlined in the Programme for Financial Market Reform which accompanied the Commission Communication Driving European Recovery adopted on 4 March 2009. The main elements of the Programme were devoted to supervision, alternative investment management, remuneration, prudential requirements for banks and measures to strengthen consumer and investor confidence. They were largely consistent with the global agenda for reform outlined by the G20.
3. Apart from this new Programme, the Commission continued with the implementation of policy initiatives started in previous years, such as the Ecofin Roadmaps ('Actions taken in response to the financial turmoil', 'Review of the Lamfalussy process' and 'Strengthening EU arrangements for financial stability'), the SEPA, and the simplification and the administrative burden reduction exercises.
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