Globalisation and Regulatory Competition

Among market participants, States, and even among regulators, there is constant tension over globalisation and regulation, over the regulation of risks and the search for innovation and competiveness, over regulation slanted towards the mastering of systemic risks of a global nature and regulation slanted towards the protection of the market and national players. With the aim of bringing a common set of responses to the weaknesses pinpointed, the post-crisis international regulatory framework, spurred notably by the G20, has been the source of undeniable progress achieved in reconciling globalization and regulatory competition.

However, new challenges are coming to light, on one hand linked to the emergence of an “America First” agenda which may make brittle the international consistency sought in past years, and on the other, to the departure from the EU of Europe's main financial market place. Europe must also find the means to strengthen its regulatory and supervisory frameworks in terms of efficiency, in order to favour supervisory convergence over regulatory detail.