No. 107 - The Case for a Consolidated European Banking Act ("EUBA")
A Reflection Paper
In order to foster the growth of the EU single banking market, the regulatory framework needs to be simplified by reducing the scope for differences between the national jurisdictions as much as possible and rebalancing its multi-level structure between Level 1 principles-based rules and Level 2 more detailed provisions.
To this end, the paper entitled 'The Case for a Consolidated European Banking Act (EUBA). A Reflection Paper' addresses the main legal hurdles and identifies the technical and legal path to be followed in this regard, by taking into account the limits deriving from the current Treaties, the related case law of the Court of Justice, and the Union legislator's practice to date.
For this purpose, the 'Reflection Paper' first suggests consolidating the various texts that currently compose the Single Rule Book into a single legislative act (the EUBA). The main part of this act would be a directly applicable omnibus regulation, aimed at simplifying and harmonising the banking legal framework throughout the Union. However, a very small set and irreducible core of provisions would necessarily remain in an omnibus directive, confined to rules on freedom of establishment, cross-border provision of services, and the independence and accountability requirements of supervisory authorities.
The 'Reflection Paper' then suggests to foster delegation to the EBA's technical standards, endorsed by the Commission (the 'Level 2 Regulation'), for a significant number of rules currently set out in directives or regulations of the European Parliament and the Council (the 'Level 1 Legislation'), tweaking in parallel the Level 1 Legislation towards a more principles-based approach.
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01 December 2025
A Reflection Paper
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