EBF advisor: Noémie Papp

Publication date: 10 May 2017

The European Commission today published the mid-term review of  its Digital Single Market strategy.

The Digital Single Market, or DSM, is unquestionably an opportunity for all operators willing to embrace the digital transformation. The EBF supports the creation of a DSM which seeks to boost growth, competitiveness, innovation while preserving security, privacy and consumer rights.

The EBF in particular welcomes the following initiatives announced in the presentation of the mid-term review :

• Free flow of data: The EBF fully supports any EU initiative that could remove restrictions to the free flow of data which at the same time acknowledges the right that businesses have to choose where they store their own data.
• Cybersecurity: The battle against cybercrime is of paramount importance in order to ensure the effective delivery of the Digital Single Market. Indeed, the trust of both citizens and companies in digital services and offerings cannot be taken for granted and must have the appropriate digital security. All efforts related to data protection and privacy are only as good as the security is efficient. The EBF therefore appreciates further actions in this field, in particular enhancing collaboration, cooperation and convergence within and between the European and international levels with an efficient framework and networks for information sharing and reporting.
• Digital skills: As a member of the Digital Skills and Jobs Coalition (DSJC) the EBF encourages a swift implementation of the New Skills Agenda and further efforts from the Member States to improve the basic digital skills for all through education curricula and life-long learning. It is in line with the work conducted by the EBF and its members in the context of the European Money Week which take place every year (see http://www.europeanmoneyweek.eu/)

The DSM should encourage the development of financial technology and bring dynamism and competition into the financial sector, both for incumbents and new entrants. This without exposing the financial sector to new risks or significant potential failures which could endanger the financial stability, loss of public confidence, or creating an uneven regulatory framework, in particular when it concerns the access, transfer and re-use of data.

In order to develop digital financial services the European Commission should conduct further assessment with a proportionate approach taking into account its ‘Better Regulation initiative’. Any new legislative initiative must not unduly constrain financial technology companies from providing an effective response to the challenges posed by digitalisation.

Click here for the full announcement made today by the European Commission.