Message from the CEO, Nina Schindler
Europe is at a decisive moment: After a more than a decade of regulatory milestones the rising global competition calls for a fresh approach. To ensure that businesses can continue to prosper and innovate, simplification must become the primary objective. Overly complex regulatory frameworks should not stand in the way of the economic, environmental and social progress we collectively seek.
For many decades, Europe’s cooperative banks have served as anchors of stability and drivers of sustainable growth. We are uniquely positioned to drive innovation and competitiveness while maintaining our steadfast commitment to responsible banking, social prosperity and the green transition.
The EACB therefore welcomes the European Commission’s commitment to simplification and competitiveness, as announced in the recent Competitiveness Compass, the Communication on implementation and simplification and the Commission Work Programme for 2025. The Omnibus package, which aims to streamline and improve the CSRD, the CSDDD and the taxonomy regulation is an important first step. With regard to the multitude of improvements that are required we very much hope that the European Commission will present an ambitious project by the end of the month.
Cooperative banks are determined to remain flexible and innovative, yet this evolution can only happen if regulations are simple, agile and designed with the sector’s diversity in mind. Simplification measures should seriously reconsider legislation still on the table and focus on facilitating implementation and compliance of legislation in place.
The EACB and its members are eager to work with the Commission and the co-legislators to find the regulatory sweet spot that provides incentives for sustainable and responsible economic growth and innovation while leaving enough room for commercial freedom and entrepreneurship.
3 Questions to Priscille Szeradzki, President of the EACB, and Deputy CEO of CNCM
Ms Priscille Szeradzki, born in 1985 in Poitiers, currently serves as the Deputy CEO of Confédération Nationale du Crédit Mutuel (CNCM), the central body of Crédit Mutuel group. Before joining the group, she worked in the field of international relations, for the French agency in charge of granting asylum, and as a diplomat for the Ministry of Foreign Affairs. She then joined the Ministry of Economy and Finance, where she led significant projects and negotiations at the international, European, and national levels. Notably, during the COVID-19 crisis, Ms Szeradzki was in charge of formulating restructuring plans for major companies facing challenges.
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1. What do you see as the biggest challenges for cooperative banks in the increasingly digitalised world of finance and an EU economy which faces the challenge of financing the digital and green transition in a globally competitive landscape?
Aside from the regulatory agenda, one of our priorities should be to show that cooperative banks are providing concrete answers to the challenges of our time. Among them, the environmental and digital transition is already a focus of the cooperative sector. Our democratic governance combined with our pioneer spirit should allow us to lead deep transitions.
Our models foster a deep connection with communities, which gives us a distinct capacity to absorb risk and invest in projects that create broad societal value. Indeed, cooperative banks take concrete action dedicated and personalized offerings, large-scale investments in innovation and corporate philanthropy initiatives. However, it is important that the regulatory framework allows room to continue these efforts by balancing objectives to be achieved with operational realities and the need to preserve commercial freedom.
Furthermore, one of the biggest challenges I see is that cooperative banks have to find the right balance between embracing new technologies and staying true to the values that define the cooperative model, such as proximity to customers and financial inclusion. As the financial landscape becomes more digitalized and open to non-European players, cooperative banks are confronted with growing competition from non-bank digital providers, digital-only banks and foreign companies, which often benefit from lower operational costs and fewer regulatory burdens. This creates an unequal playing field that can put pressure on European cooperative banks. It is therefore crucial for EU regulators to ensure fair competition across all market players.
A well-balanced regulatory approach should allow banks to develop diverse and resilient business models, avoid discrimination between different types of banks, and support market diversity rather than imposing a one-size-fits-all framework. Such an approach would empower cooperative banks to further innovate, while remaining committed to their foundational values of customer-centricity and financial inclusion.
Ultimately, the road ahead demands bold vision and collective resolve. This is a critical moment to shape a financial system that is modern, resilient, and, most importantly, human-centred. A financial ecosystem where cooperative banks continue to serve as a driving force for inclusive growth and sustainable progress in every corner of Europe.
2. Looking at the legislative initiatives still on the table from the previous legislative term and at what could be expected for the next term, what do you see as the key priorities for the EACB in 2025?
A key focus for 2025 will undoubtedly be competitiveness. As highlighted in the Draghi report last September, Europe is facing a severe decline in competitiveness compared to other major economies and only massive investments in innovation can put us on the right track. This cannot be achieved without a strong banking and financial system.
I am convinced that cooperative banks, as integral parts of the European economy and society as described above, are part of the solution. A right regulatory framework should allow them to leverage finance as a driver of innovation and growth. We need a banking sector that is competitive and diverse, capable of supporting both pan-European and more locally oriented economic activities. This requires a regulatory environment in which different business models, including those of cooperative banks, can thrive.
This is why we have emphasized the need for a balanced regulatory framework in our May 2024 manifesto and have called for a shift toward more principle-based, pragmatic legislation. A regulatory environment that weighs regulatory interventions—such as those in the digital euro and the Retail Investment Strategy (RIS)—with the flexibility to foster competitiveness and innovation, is essential. The European Commission’s commitment to regulatory simplification is a welcome first step, and we fully support this priority. The broad simplification agenda, including the review of various regulatory "clusters," must ensure that existing legislation is simplified while also addressing regulatory frameworks that have yet to be implemented.
We should avoid creating new and unnecessary rules that could hinder growth and innovation and, unintentionally undermine our sovereignty. One example is the Financial Data Access (FiDA) regulation, which deserves renewed scrutiny. Reflections on its withdrawal, though not materialized, are valid as not only does the text add complexity, it also poses strong risks in terms of cyber security and sovereignty of Europeans’ data. Another example is the retail digital euro project that raises concerns, particularly regarding its potential to crowd out existing European home-grown payment solutions and undermine banks’ lending capacities. We must ensure that the digital euro does not displace homegrown European payment solutions or restrict the lending capacities of cooperative banks. It is essential for policymakers to support EU-based initiatives that prioritize European sovereignty in digital finance, ensuring Europe has the tools it needs to compete globally.
On the matter of simplification, we are particularly focused on the “Omnibus 1” package expected at the end of this month, which aims to streamline and improve the CSRD, the CSDDD and the taxonomy regulation. This package will address aspects of sustainability legislation that were adopted with an existential ambition but insufficient assessment of their impact. While European cooperative banks remain fully committed to the transition to an environmentally sustainable economy, there is an urgent need for improvement. Any efforts to simplify rules for SMEs and non-financial companies must be complemented by a symmetrical ease of reporting requirements for the financial sector, as banks should remain capable of providing detailed reporting at the request of supervisory authorities.
The “Omnibus 1” package will be a litmus test for the EU’s commitment to simplification without trading off our ambition to deliver on the green transition. The EACB is willing to participate in this work to make it the most efficient possible, by exchanging trustfully with co-legislators. If it falls short, it risks further undermining trust in European institutions’ ability to question themselves and deliver fast solutions to identified difficulties. We very much hope that the European Commission will present an ambitious project by the end of the month.
Looking at the competitiveness of the EU banking sector, we have now implemented the remaining part of the Basel III reform, and intense technical efforts will accompany the development of delegated mandates. While regulatory simplification is crucial, it is equally important to assess how these new frameworks will impact European banks—particularly if other major jurisdictions do not adopt similar measures. This raises the importance of the EU’s macroprudential rules, which we believe should be simplified to avoid double counting of risks and ensure a more predictable and competitive environment. Additionally, as the legislative review of the EU crisis management and deposit protection framework continues, it is vital that we avoid any negative impacts on debt markets or organizational arrangements.
Finally, as we look at other regulatory areas such as the ongoing revision of the Payment Services Directive 2 (PSD2) and the Retail Investment Strategy (RIS), it is clear that additional complexity could negatively affect both the banking and investment sectors. RIS, in particular, needs to be considered in the context of the upcoming Savings and Investment Union project. As it introduces additional layers of disclosure requirements on top of an already dense disclosure framework, the question arises whether it will help attract retail customers to the investment market.
When it comes to discussions on fraud and liability in the draft Payment Services Regulation (PSD2 revision), striking the right balance between the roles and responsibilities of payment service providers, electronic communication service providers, and payment users is key to ensuring the stability and efficiency of payment systems.
3. 2025 marks the UN’s International Year of Cooperatives, presenting a unique opportunity to spotlight the cooperative banking model. How will EACB leverage this moment to strengthen its advocacy and increase awareness of the sector’s contributions to sustainability, inclusion, and innovation?
The International Year of Cooperatives in 2025 is a momentum, a unique opportunity for us to mobilize stakeholders all over Europe and showcase what makes our model so modern, innovative and relevant.
This announcement shows that our democratic governance and customer-ownership model remains more relevant than ever in a world marked by geopolitical uncertainty and growing social divides. It reminds us that our values are not just a legacy of our past, but a blueprint for the years to come. Therefore, through strategic events, partnerships and awareness campaigns, our association will leverage this moment to explain and promote the singular nature of the cooperative banking model and how we are paving the way for a more stable, inclusive and sustainable Europe. Cooperative banking bring society an optimistic vision: human interest at the core; concrete tools to face challenges.
2 questions Ms Alexandra Jour-Schroeder, Deputy Director-General, DG FISMA, European Commission
Ms Alexandra Jour-Schroeder is Deputy Director General of the European Commission's Directorate-General for Financial Stability, Financial Services and Capital Markets Union since March 2021. She started working for the European Commission 25 years ago, inter alia for the Commissioners responsible for regional policy, justice and industry. Since 2017, she has been Director for Criminal Justice in the Directorate-General for Justice and Consumers and from 2018 to 2021 acting Deputy Director General.
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1. In recent days we have been able to observe some big announcements on the side of the Commission in the area of competitiveness and simplification. Indeed, the competitiveness compass was launched and a simplification agenda is set to be issued as well. Could you shed some light as to how these two initiatives might impact the work of DG FISMA?
The Commission has initiated a resolute effort to create a regulatory environment that drives innovation, growth, quality jobs and investment.
The recently adopted Competitiveness Compass sets out a new vision for strengthening Europe’s competitiveness. Reducing administrative burdens and aligning regulations will play a vital role in this respect. Our objective is to eliminate overlaps and contradictions, while maintaining high standards. We want to make sure that EU rules are applied in the simplest, fastest and most practical way.
As President von der Leyen has already announced, an upcoming simplification Omnibus package will propose important simplifications in different fields including sustainability reporting and taxonomy. The goal is to reduce complexity while supporting sustainability practices and mobilising investment in the clean transition.
Our EU sustainable finance framework seeks to equip economic actors with the data, tools and standards needed to help mobilise investments in support of our sustainability objectives.
Sustainability and competitiveness are both essential for a healthy economy, and our approach aims to achieve the agreed policy objectives in the simplest, most effective and least burdensome way.
2. The Commission is also making headway with launching the works on the Savings and Investments Union including a recent call for evidence being launched for a 4-week feedback period. We imagine that this is the start of a much longer process. Could you elaborate on the direction of travel of this work?
The Savings and Investments Union (SIU) is a cornerstone of this Commission and a top priority for Commissioner Albuquerque. It is not a rebranding of past initiatives but a step-change to address the persistent mismatch between savings and investments in the EU and strengthen EU prosperity and competitiveness.
The need for a more competitive Europe, both internally and externally, has been widely acknowledged. Landmark reports from Enrico Letta and Mario Draghi highlight long-standing barriers preventing Europe from reaching its full potential.
According to the Draghi report, an additional investment of €800 billion per year is needed for the climate and digital transitions and to boost Europe’s competitiveness. This is far beyond what public funds alone can provide. To bridge this gap, we need functional and integrated capital markets and banking sector that bring together savers, institutional investors and companies. We must develop deeper capital markets and create conditions that channel Europe’s vast savings towards productive investments.
Looking ahead, two broad policy priorities will drive the Commission’s efforts under the Savings and Investments Union:
First, supporting citizens to save and invest for their future, making more private financing available for EU businesses. More long-term investments mean better returns for savers, stronger financing for businesses to drive our economic growth and prosperity. To achieve this, we must improve retail investors’ access to financial markets, remove barriers, create incentives and boost financial literacy to empower citizens.
Second, strengthening Europe’s financial system with capital and banking markets progress in tandem. The large-scale investments necessary to support Europe’s industrial transformation require a more interconnected, efficient and dynamic financial system. Today´s fragmentation holds back business. Investors still face too high costs due to fragmented national laws and duplicated processes. Greater supervisory convergence is essential to support a more integrated and harmonised financial system.
The Commission will soon present a new strategy with a clear view to finance innovation and productivity in the EU. Its success is not only hinging on the European Commission. Full participation and cooperation from Member States, a common political will, and effective collaboration with the financial industry and other stakeholders will be key to delivering real impact.