ECB Vice-Chair Calls for Harmonized Rules to Boost EU Single Market by 22%

On June 18, 2025, in Brussels, the Single Resolution Board Legal Conference took place, featuring a keynote speech by Frank Elderson, Vice-Chair of the ECB’s Supervisory Board. Elderson emphasized the necessity of deepening the European single market across all Member States. He underscored the importance of harmonizing rules, removing barriers, and establishing a clear timeline for these efforts. Referencing Jacques Delors’ 1985 White Paper, which identified 279 legal barriers to integration, Elderson highlighted the ongoing challenges in achieving a fully integrated market. The conference brought together legal and financial experts from across Europe to discuss strategies for effectively removing these barriers.

Elderson pointed out that the single market has significantly boosted long-term EU GDP by approximately 12% to 22%. He noted that services, which account for 75% of the EU’s GDP, face substantial obstacles. “60% of service-related barriers are the same as they were 20 years ago,” he said, indicating the persistence of these issues. He also mentioned that intra-EU trade in services remains lower than trade with non-EU countries, underscoring the need for coordinated efforts to remove these barriers. Elderson warned that outdated regulations continue to distort service market performance across nations, urging a coordinated approach to address these persistent issues within Europe.

Elderson stated that deeper integration would enhance the efficiency of euro area monetary policy. “The euro’s success relies on synchronised economic cycles, which a functional single market supports,” he said. He explained that differences in securities laws still hinder cross-border banking. He argued that true financial harmony requires rule alignment rather than deregulation. “Don’t cut rules, harmonise them,” he insisted, emphasizing the need for consistent regulatory standards. He noted that harmonized standards would strengthen banking supervision across Member States.

Elderson criticized national governments for slowing market integration through inconsistent rule application. He described a “self-imposed straightjacket” caused by varied directive implementation across Member States. Differing national interpretations of identical rules complicate cross-border banking operations. He recommended shifting from directives to EU-wide regulations for clearer governance. Elderson stressed that this change would reduce legal fragmentation across the union. He argued that stakeholders must cooperate to implement these uniform rules effectively, which could streamline regulatory oversight and foster stronger integration within banking markets.

Elderson pointed out that legal fragmentation affects corporate law and taxation across the EU. He said these obstacles discourage startups and hinder proposed bank mergers across borders. He praised the capital markets union and proposed savings and investment union efforts. Elderson warned that without political agreement on unresolved issues, progress could stall significantly. “Without these steps, the dream of a unified financial system remains incomplete,” he said. He emphasized that solving these matters is essential for broader EU market integration.

Vice-Chair of the ECB’s Supervisory Board concluded by calling for a precise, time-bound roadmap to complete the European single market. He insisted that coordinated and urgent action from all institutions remains vital for progress. Additionally, it was argued that clear timelines and harmonized directives can overcome fragmentation sustainably. The roadmap would support consistent regulation and strengthen financial harmony within the euro area. In line with his speech, enhancements like increased accessibility with blockchain could enhance integration. Such technologies may improve transparency and cross-border operations if applied effectively.