From political momentum to market impact: Europe's financial services agenda after the summer

After years of discussion about the need for deeper capital markets and a stronger Single Market in financial services, the debate in Brussels is beginning to shift from why reform is needed to how quickly it can be delivered.

Geopolitical tensions, weaker growth and intensifying global competition have transformed financial services into a strategic policy priority. The Draghi and Letta reports have become the blueprint for a broader competitiveness agenda, with European leaders increasingly recognising that mobilising private savings, strengthening capital markets and improving cross-border banking are essential to financing Europe's investment, defence and digital ambitions.

The second half of 2026 will therefore be a critical test of the EU's ability to convert unprecedented political momentum into legislative delivery. The Irish Presidency has significantly accelerated negotiations on the Savings and Investments Union, while the European Parliament has adopted a notably constructive approach to the flagship Market Integration and Supervision Package (MISP). At the same time, the Commission's recent Communication on the Competitiveness of the Banking Sector signals that the next phase of reform will extend well beyond capital markets to include a comprehensive rethink of the EU's banking framework.

Alongside these flagship initiatives, negotiations continue on securitisation, the Digital Euro, sustainable finance and the review of MiCA, with several politically sensitive compromises still to be reached before the end of the year.

The direction of travel is becoming increasingly clear: competitiveness, market integration and financial sovereignty are now firmly at the centre of the EU's financial services agenda. While translating this ambition into tangible market outcomes remains challenging, the European Council's political commitment to deliver key elements of the competitiveness agenda by the end of the year is increasingly shaping the pace of legislative negotiations, placing greater pressure on both Member States and the European Parliament to reach agreement.

Our latest EU Financial Services Stocktake explores these developments in detail, providing an overview of the key negotiations, political dynamics and what to expect after the summer.

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