Financial markets are crucial to the functioning of modern economies. The
more integrated they are, the more efficient the allocation of capital and
long-run economic performance will be. Completing the single market in
financial services is thus a crucial part of the European Commission’s
overriding objective of stimulating economic recovery in Europe.
Following the outbreak of the financial crisis in 2008, the stabilisation
of financial markets became a priority and
financial sector reform a crucial
instrument to achieve it. Filling in the gaps in financial sector regulation
and strengthening the
supervision of the financial sector in Europe have
been the two main strands of work.