Confirmation hearings reveal EU finance priorities

In a series of confirmation hearings, EU Commissioners-designate presented their visions for the financial sector. From building a stronger Savings and Investments Union to simplifying sustainable finance for SMEs, their priorities highlight a transformative path for the EU economy.

This article was written by Alessia THOMPSON, ABBL, ALFI & ACA European Affairs, and Antoine Kremer, ABBL, ALFI & ACA Head of European Affairs

Savings and investments union at the heart of Albuquerque’s strategy

In her recent confirmation hearing, the Portuguese Commissioner-designate Maria Luís Albuquerque outlined her ambitious plans for the EU financial services sector over three hours of questions – and, at times, criticisms – from MEPs.

The Portuguese Commissioner-designate championed her vision for the Savings and Investments Union (SIU), which promises to open new opportunities for European citizens, offering diversified investment products to boost their savings and unlock new financing options for European businesses. Key to her strategy? Prioritising financial stability while also revitalising securitisation and pension funds as vital elements for a thriving Capital Markets Union (CMU).

Completing the banking union

Her plans for the EU do not stop here. In fact, Ms. Albuquerque also addressed the urgency of completing the Banking Union, stressing the importance of establishing a level playing field for European banks and facilitating cross-border operations. The Commissioner in waiting was nevertheless adamant that her first priority was preserving financial stability at all costs, even if this means speeding ahead with the implementation of Basel III standards while other jurisdictions like the US lag behind.

Streamlining sustainable finance

When it comes to sustainable finance, the Commissioner-designate is determined to remove the burden of red tape and overcomplex reporting requirements from the shoulders of smaller enterprises. She also committed to a resolute fight against greenwashing practices through the creation of a better categorisation of financial products. After having received her confirmation as Commissioner, Maria Luís Albuquerque feels ready to tackle the challenges ahead and to develop a resilient and robust Savings and Investments Union in the EU.

Hoekstra’s vision for advancing EU taxation

Commissioner-designate Wopke Hoekstra also held his confirmation hearing in the same week as Ms. Albuquerque. While his portfolio focuses mainly on climate change, Mr. Hoekstra also expressed his vision for EU taxation, which falls within his remit.

The Dutch Commissioner-designate is in fact determined to advance the taxation files that are currently stuck in Council by collaborating with ministers of finance and EU legislators. In addition, the recent American presidential election did not shake Mr. Hoekstra’s optimism, as he expects constructive dialogue on tax matters with major international actors such as the United States.

Supporting European SMEs through simplified reporting

In his own confirmation hearing on Tuesday, Stéphan Séjourné, Executive Vice-President-designate for Prosperity and Industrial Strategy, reinforced the importance of simplification as a priority for the new mandate by expressing his intention to streamline reporting requirements and red tape for SMEs. The French Executive Vice-President-designate also highlighted the need to increase access to financing for European enterprises to allow for investments in the EU’s strategic sectors.

Building a tech-sovereign EU

This last point was also stressed by Henna Virkkunen, Executive Vice-President-designate for Tech Sovereignty, Security and Democracy, who was interrogated by the European Parliament shortly after Mr. Séjourné. According to the Finnish Executive Vice-President in waiting, the development of a robust Capital Markets Union is crucial not only for the digital transition, but also to ensure that investments aimed at strengthening the resilience and autonomy of the EU are carried out. Ms. Virkkunen also expressed her intention to promote accessibility and application of AI across various EU industries, including financial services.

The Commissioner-designates clearly expressed their vision for the financial services sector, and it is now time for action. As their mandate unfolds, we look forward to seeing what they will deliver.