EU unveils financial ‘super regulator’ plan

Published December 5, 2025 Updated December 5, 2025 08:09am
European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium in this file photo. —Rueters/File
European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium in this file photo. —Rueters/File

BRUSSELS: The Euro­pean Commission unvei­led on Thursday plans for a beefed-up “super-regulator” as part of an effort to unify financial markets in the hope of gaining autonomy from the United States.

Under the proposal the European Securities and Markets Authority (ESMA) would take over supervision of cryptocurrency markets and the licencing of market players, supplanting national regulators across the 27-nation bloc.

It would also gain supervisory control over significant financial market infrastructure, such as stock exchanges, as well as post-trading service providers such as transaction clearing houses and depositories.

Supervision of large asset managers ESMA would also fall under its remit.

“More integrated capital markets are essential for fortifying the EU’s economic strength and achieving strategic priorities such as competitiveness, digital and green transitions, defence and security,” the commission said in a statement unveiling its proposals.

They mark a first step towards the creation of a unified capital market to help Europe’s flagging economies better compete against faster-growing ones in the United States and Asia.

The plan does not touch on regulation and supervision of banks.

The commission said EU financial markets remain fragmented, small and lack competitiveness.

It noted that stock market capitalisation in the bloc is roughly 73pc of gross domestic product, compared to 270pc in the United States.

Published in Dawn, December 5th, 2025

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