Priorities of the next European Commission for payments and credit
These ECRI Explainers delve into the payments and credit related policies that should be the focus of European legislation during the 2024-2029 institutional cycle. They start by examining Level 1 - pending files, followed by Level 2 - implementation of files, and finally Level 3 - recommendations for future policy developments.
PRIORITIES OF THE NEXT EUROPEAN COMMISSION FOR PAYMENTS
On payments, the paper reviews three pending files, PSD3/PSR, FIDA, and the Digital Euro. It highlights the importance of balancing SCA between innovation and consumer protection under PSD3 and PSR. It also discusses how to reduce the potential negative impacts on payments of the FIDA proposal. On the Digital Euro, there is a need to review and articulate the rationale behind its creation. The second part, on implementation, focuses on the Instant Payments Regulation. The discussion centres on what the Commission has to prioritise to achieve its objectives. The paper concludes by looking ahead, recommending that the Commission consider a regulatory pause for payments and focus on promoting implementation and alignment of regulatory frameworks.
PRIORITIES OF THE NEXT EUROPEAN COMMISSION FOR CREDIT
On credit, the explainer starts by analysing FIDA. It discusses the uncertainties in the current formulation of the directive and highlights the need for further clarifications to ensure data is shared in an appropriate and secure way. It then looks at the implementation phase of the AI Act and the CCD2, arguing that the first must be implemented to foster innovation, allowing companies to reap the benefits of AI while addressing its risks. Concerning the CCD2, attention is drawn to the consequences of heterogenic implementation by Member States. Looking towards the future, the paper discusses the latest developments in the mortgage credit market and the importance to considering future risks in the review of the directive, and concludes with some recommendations.
Fredrik Andersson is Researcher at ECRI and CEPS. Judith Arnal is Senior Research Fellow at ECRI and CEPS. Beatriz Pozo Pérez is Coordinator of the Financial Markets and Institutions Unit at CEPS.
