KEY TAKEAWAYS
1. To follow the recommendations of the Draghi report on EU competitiveness and as part of its ongoing efforts to implement the Savings and Investment Union Strategy, the European Commission adopted on 4 December 2025 the Market Integration Package.
2. The objective of the package is to address the persistent fragmentation of EU capital markets, by creating a more integrated and efficient financial system that channels private investment toward strategic priorities such as the green, digital, and innovation transitions.
3. The package consists of three legislative proposals, which seek to implement targeted reforms of specific areas of the capital market ecosystem:
- Trading and post-trading integration: easier cross-border access for trading venues and central securities depositories.
- Asset management harmonisation: removal of barriers for investment funds and improved passporting rules.
- Innovation enablement: regulatory flexibility for DLT-based solutions.
4. The package also aims to achieve more general objectives, in particular:
- simplification and harmonisation: conversion of directives into regulations.
- centralisation of supervision: direct supervisory powers of ESMA over major infrastructures and crypto service providers.
5. Next steps: the proposal will now be assessed by the Council of the EU and the European Parliament.
INTRODUCTION
The European Commission (EC) has published the Market Integration Package as part of its broader efforts to strengthen the EU’s financial ecosystem. This package is a key part of the EC's Savings and Investments Union (SIU) strategy, aiming to improve investment options for citizens and facilitate business access to funding by integrating and scaling capital markets. The SIU strategy also features other measures to integrate and...
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