Filenews 29 December 2025
The European Union is accelerating its steps towards the creation of a single capital market by activating the Savings and Investment Union (SIU) project, with the aim of removing barriers, bureaucratic constraints and national specificities that continue to fragment capital markets in Europe.
The European Commission has adopted a package of measures aimed at facilitating trading on all markets and exchanges, both locally and cross-border, by introducing uniform rules, common supervisory standards and extensive use of blockchain-like technologies.
The central objective is to create an integrated, efficient and competitive financial system, which will offer more savings options for citizens and improved access to finance for businesses across the EU.
Blockchain and the abolition of T+2
At the heart of the changes is the implementation of Distributed Ledger Technology (DLT), i.e. blockchain technology, both at the transaction stage and in post-transaction processes. Among the main interventions is the abolition of the T+2 or T+3 arrangement, with the aim of immediate clearing and safekeeping of securities through a so-called atomic settlement.
At the same time, a uniform opening hours of the markets are foreseen, full and uniform application of MiFID without local derogations, as well as full accessibility of investors to any security traded in any European market.
Uniform rules and a pan-European market
The package of measures aims to eliminate any national specificity, with the main axes being:
- enhancing the inflow of capital to regulated markets and central securities depositories;
- the establishment of a single "Pan-European Market Operator (PEMO)" regime;
- streamlining corporate structures and licenses into a single entity in the Eurozone;
- facilitating the cross-border distribution of investment funds, such as Mutual Funds, UCITS and AIFs.
Market pressures and concentration
The Commission's decision was taken a few days after the completion of the proposal for the acquisition of HELEX by Euronext, a move interpreted as an early adaptation to the developments underway at the European level.
The implementation of the new rules is expected to put pressure on individual markets, potentially leading to further concentration, as stock exchange platforms are required to operate as a single market. Individual markets will need to make significant investments and technical adjustments in order to respond to the new regime.
Why Europe is accelerating
According to the Commission's recommendation, EU capital markets remain fragmented, small and less competitive. In 2024, the total capitalization of European stock markets accounted for just 73% of EU GDP, compared to 270% of GDP in the US, while investment funds in Europe are five times smaller than those of Wall Street.
Different national regulations continue to restrict cross-border activities, negatively affecting both businesses and investors. The new package attempts to radically simplify the regulatory and supervisory framework, just nine months after the presentation of the SIU strategy, underlining the political urgency of the initiative.
As it is pointed out, Europe starts from the "easiest" part, capital markets, as strong resistance continues to be recorded in the banking sector.
