Long term strategic priorities for the European Union

The European Commission has published its second annual "Strategic Perspectives Report", which provides a multidisciplinary view on the most relevant future trends that will affect the EU's capacity and freedom to act in the coming decades, including: climate change and other environmental challenges, digital hyperconnectivity and technological transformations, pressure on democracy and values, as well as shifts in the global order and demography. It sheds light on possible policy responses for the EU’s open strategic autonomy, identifying 10 strategic areas to strengthen the EU’s global leadership and to boost the EU´s open strategic autonomy by 2050 aiming to ensure the EU’s freedom and capacity to act.

Regarding the strategic area number six “Building a resilience and future-proof economics and financial systems”, the report specifically highlights the following themes relevant for the financial sector:

• Capital Markets Union and Banking Union: The EU should remove the remaining obstacles to market integration and to fully implement the CMU and the BU, which are essential to diversify and deepen sources of funding for EU companies, improve saving opportunities for EU citizens, strengthen the EU’s ability to absorb shocks and support stronger domestic financial markets.
   
• The key role of EU financial system in financing the transition to a climate-neutral economy and resilience against environmental degradation. The EU will need EUR 470 billion in additional investment per year to reach its 2030 climate and environmental targets. The report mentions that this transition must be fair and accompanied by stronger economic and social convergence.
   
• Profound shifts in the digital age: A growing role of crypto-assets and the development of digital currencies (Euro digital) and EU-wide solutions for instant payments can create new opportunities for citizens and businesses, but consumer protection needs to be ensured and a proper regulatory and supervisory framework needs to be implemented.