Berlin, 17 February 2026 – Germany and France have jointly called on the European Commission to swiftly develop a coordinated and ambitious “Financial Services Simplification Package” aimed at easing regulatory burdens and strengthening the competitiveness of European financial institutions. The appeal was detailed in a letter obtained by Reuters on Sunday.
The letter, sent on Friday by German Finance Minister Lars Klingbeil and French Finance Minister Roland Lescure to Mária Luís Albuquerque, the European Commissioner for Financial Services, emphasises that mere adjustments to future legislation will not suffice. Instead, they argue, existing regulations themselves must be streamlined. According to the ministers, this approach will enhance the single European financial market and improve the global competitiveness of EU-based institutions.
Key areas highlighted in the letter for simplification include:
Reporting processes – Introducing “once-only reporting” for financial transactions, eliminating redundant oversight while relying on established market practices.
Obsolete delegated powers – Removing powers and authorities that are no longer in use.
Cybersecurity reporting – Reducing reporting burdens on financial institutions to ease administrative pressures.
The letter further notes that additional proposals relating to banking supervision are being prepared by both governments and will be shared with the European Commission in due course.
The table below summarises the principal areas of simplification outlined in the letter:
| Area | Proposed Simplification | Objective |
|---|---|---|
| Reporting processes | Once-only reporting, remove extra oversight | Reduce compliance burden on businesses |
| Delegated powers | Remove obsolete powers | Simplify existing regulatory framework |
| Cybersecurity reporting | Streamlined reporting | Lower administrative load |
| Market practices | Reliance on established market procedures | Accelerate operational efficiency |
| Banking supervision | Future proposals to be submitted | Improve collaboration with regulators |
Financial analysts suggest that, if adopted, these reforms could make the European financial services sector significantly more competitive. Reducing unnecessary regulatory complexity would allow small and medium-sized enterprises (SMEs) to access international markets more easily.
The initiative is being seen as a potential pathfinder for regulatory modernisation within the EU’s financial market. Experts highlight that, beyond supporting institutions, simplification could also ease pressures on consumers and investors by fostering more transparent and efficient operations.
If implemented successfully, this package could represent a landmark step in reinforcing the EU single market, creating a streamlined regulatory environment while maintaining robust supervision and financial stability.