A global financial market
In an increasingly globalised world market, national and international authorities have to work together to develop effective policies for regulating and supervising financial markets.
In particular, the recent financial crisis has emphasised the global interdependence of financial markets and the need for international cooperation.
The 2008 G20 summit in Washington agreed on a common roadmap for financial regulatory reform in order to tackle the global financial crisis and to ensure a level playing field. The G20 also committed itself to fight against protectionism and to refrain from raising barriers to investment.
The role of the Commission
Since the 2008 G20 summit, the intensity of international cooperation on financial regulation has increased and the EU has played a key role in this process.
The European Commission is working with its international partners to develop a consistent policy on the regulation of financial markets and capital movements, in particular by
- taking an active part in the work of international fora and standard setting bodies
- developing bilateral regulatory dialogues with key partner countries
- promoting convergence with EU rules in the framework of the EU enlargement process
The Commission also works on the assessment and recognition of foreign regulatory frameworks in order to promote convergence with non-EU countries.
Most EU laws on financial regulation adopted in recent years include provisions that make it possible for the Commission to adopt equivalence decisions. These decisions recognise that the regulatory or supervisory regime of a certain non-EU country is equivalent to the corresponding EU framework.