Financing Europe’s Competitiveness: European Banking Federation recommendations for Europe’s incoming powerhouse

Financing Europe’s Competitiveness

European Banking Federation recommendations
for Europe’s incoming powerhouse

BRUSSELS, 17 April 2024 – The European Banking Federation (EBF), representing more than 3500 banks, unveiled today the recommendations for the incoming European leaders. Titled “Financing the future: a strategic banking sector for a competitive Europe”, the document underlines the readiness of the sector to power Europe’s ambitions by formulating a set of policy recommendations aimed at improving the regulatory framework for the next 5 years and beyond.

The Memorandum serves as a waking moment for European policymakers embarking on their mandate. The EBF highlights the focus of next five years’ key priorities, including bolstering the EU’s economic potential, promoting transition finance for the EU Green Deal, fostering a secure digital transformation, and completing the Single Market for financial services. Furthermore, it underscores the urgent need for an integrated, open, and liquid capital market in Europe capable of mobilizing private capital at the scale required for unlocking Europe’s economic transformation.

The 2024 European elections represent an opportunity to rethink the approach towards strategic sectors to restore Europe’s global competitiveness. As our continent has been facing pivotal challenges – from the COVID-19 pandemic to geopolitical tensions – the European banking sector has displayed remarkable resilience. Nevertheless, these events have exposed vulnerabilities within global value chains, exacerbating Europe’s fading global competitiveness.

At the forefront of these changes, Europe’s banks emerge as essential catalysts for progress. The banking sector is ready to take its responsabilities in funding the substantial investments needed for Europe – however this can only be achieved through a regulatory and supervisory framework that fosters competitiveness and profitability in a rapidly evolving global world ensuring fair competition among all financial entities across Europe and beyond.

Furthermore, Europe must urgently advance the development of European capital markets. It is imperative to mobilize a substantial amount of private investment through capital markets to finance the challenges ahead. Moreover, Europe needs to prioritise measures that can swiftly increase financing capacity, such as revitalizing the securitization market.

Policymakers must acknowledge the vital role of the European banking sector in driving both growth and strategic autonomy for a sustainable future in Europe. The EBF remains committed in fostering constructive dialogue with the incoming EU leaders, citizens and stakeholder representatives. This is a moment not for complacency, but for bold ambition. Now is the time for Europe to seize control of its destiny, reclaiming its position as a powerhouse on the world stage.

Media inquiries:

Sébastien de Brouwer, Deputy CEO, [email protected]

Gabriel Daia, Head of Communications and Public Affairs, [email protected]

ABOUT THE EUROPEAN BANKING FEDERATION

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from 45 countries. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere. Follow us via ebf.eu and on Twitter @EBFeu