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International relations

How the EU engages globally and with key non‑EU country jurisdictions to promote stable, open and well‑regulated financial markets and support its economic interests worldwide.

What the EU is doing and why

The EU plays an active role in shaping the global financial system and promoting stable, open and well-regulated markets. It works both bilaterally with key partner countries and multilaterally – through international for a – to address shared challenges and advance common approaches and global standards.

Bilateral dialogue allows the EU to deepen cooperation with strategic partners, exchange regulatory good practices and facilitate cross‑border financial markets activities. Through its participation in international bodies, the EU contributes to the development of global financial rules, supports financial stability, and promotes transparency and consumer protection.

Together, these efforts help ensure a level playing field, strengthen the resilience of financial systems, and support the EU’s economic interests worldwide.

Bilateral relations

Regulatory dialogues and high level meetings on financial services regulation

The European Commission holds regular talks on financial regulation with international partners. The goals of these talks are to

  • monitor regulatory developments
  • identify potential spill‑over effects of legislation in each other’s jurisdictions
  • converge towards international standards – taking into account the specific features of different regulatory frameworks and legal backgrounds
  • explore possibilities of mutual recognition of standards
  • promote international cooperation and coordinate the implementation of the G20 roadmap and international standards

Dialogues

Bilateral contacts on capital movements

In its bilateral relations, the EU uses trade agreements to promote open investments and free capital movements.

The EU has also negotiated and continues to negotiate several bilateral trade agreements. These agreements usually cover capital movements and payments, with provisions ensuring that

  • payment operations remain
  • transactions related to direct investment remain unrestricted
  • temporary safeguard measures are only possible in the case of serious difficulties for the operation of monetary and exchange rate policy

The EU is committed to internationally promoting the principle of free movement of capital.
 

Negotiations with EU candidate countries

Countries looking to join the EU have to demonstrate that they will be able to comply with all EU standards and rules.

During the negotiations for a country to join the EU, the European Commission analyses each policy area in detail to determine how well‑prepared the country is to implement the body of EU law. 

  • the EU rules for financial services that need to be implemented in candidate countries aim at ensuring fair competition among financial institutions and the stability and integrity of financial markets, namely in the fields of banking, insurance, occupational pensions, investment services and securities markets
  • concerning the free movement of capital, candidate countries must adapt their laws and institutions to guarantee the freedom of all categories of capital transactions, as well as to comply with common rules for cross‑border payments and the prevention of money laundering and terrorist financing
     

International fora

G20

The G20 is the main international forum for the discussion of economic and financial issues. It brings together governments and central bank governors from 19 countries and the European Union. The EU is represented by the European Commission and the European Central Bank.

The first G20 summit in 2008 developed an extensive agenda for stabilising the world economy and the financial system. The aim was to prevent future crises by improving global regulation and supervision. Later summits agreed on a G20 work programme with a set of concrete commitments on strengthening financial services and markets’ regulation.

The EU financial reforms introduced after the crisis are largely based on these commitments. The G20 agenda on financial regulation and supervision is being constantly updated to address new challenges.

Financial Stability Board (FSB)

The Financial Stability Board (FSB) is an international body that monitors global financial risks, recommends policy measures to promote global financial stability and oversees their implementation. It promotes financial stability by coordinating national financial authorities and international standard‑setting bodies. The FSB regularly reports to the G20, which endorses the FSB’s policy agenda and supports implementation of agreed international standards.

The European Commission and the European Central Bank are members of the FSB.

G7

The G7 is an informal intergovernmental forum of 7 advanced economies (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, with the European Union participating as a non‑enumerated member) that coordinates on global economic, security, and political issues.

The G7 also discusses financial markets‑related issues and global challenges, while the G20 has the leading role in cooperation on finance.

Organisation for Economic Co‑operation and Development (OECD)

The EU contributes to several work strands led by the Organisation for Economic Co‑operation and Development (OECD), including as member of the Committee on Financial Markets and its relevant working groups. The European Commission also contributes to the Investment Committee, which has worked with the World Trade Organization (WTO) and other international organisations to monitor investment measures taken by G20 members during the financial crisis and its aftermath.

International standard‑setting bodies

In the different areas of financial regulation (banking, insurance, securities markets, payments, financial reporting, financial crime, etc.) the European Commission works with a number of international standard‑setting bodies. These include the