During a three-hour hearing, Maria Luís Albuquerque, Portugal’s pick to be EU financial services commissioner, rejected calls to slash insurance laws to boost the economy. She also addressed conflict-of-interest concerns stemming from her private sector career. Albuquerque emphasized the importance of implementing post-crisis banking rules, even amidst fears that the incoming Trump administration in the US may reduce regulatory protections. She stressed the need to preserve financial stability and avoid a “race to the bottom” in terms of regulations.
Concerns were raised about potential negative impacts on Europe from future US bank regulation agendas, particularly as President Donald Trump had just secured a second term. There were worries that the EU might have to delay measures to shore up banks due to differences in rulebooks between the EU and the US. Albuquerque faced accusations of passing through a revolving door when she left government to work for a company involved in buying sour loans from banks. However, she maintained that the ethics committee of the Portuguese Parliament had previously examined and cleared her of any conflict of interest. Albuquerque proposed focusing on implementing existing laws rather than introducing new measures, aiming to address complaints that excessive legislation was hindering business growth.
Albuquerque’s stance on maintaining existing obligations rather than slashing them for the sake of the economy was clear during the hearing. She seemed to reject calls to reduce capital requirements on insurers and pension funds to encourage investment in innovative companies, as suggested by former European Central Bank chief Mario Draghi. Albuquerque highlighted the recent review of Solvency 2, a major reform to insurance law, and emphasized the need for further work to ensure its successful implementation. Her approach of focusing on existing laws and regulations is likely to be welcomed by the financial sector, though it may not align with calls for deregulation to promote economic growth.
The ongoing hearings for candidates to become European Commissioners, set to continue until November 12, have already sparked concerns over the selection of Swedish conservative Jessika Roswall to lead the European Green Deal. If approved by the European Parliament, Albuquerque could replace Mairead McGuinness as the EU’s top financial services official in the coming weeks. With the financial sector closely monitoring the outcomes of the hearings, the decision on Albuquerque’s appointment could have a significant impact on financial regulations and policies within the EU. Despite facing scrutiny over potential conflicts of interest, Albuquerque’s commitment to preserving financial stability and implementing existing rules could sway lawmakers in her favor.
The European Parliament hearing with Maria Luís Albuquerque shed light on crucial issues related to financial regulations and decision-making within the EU. Albuquerque’s rejection of calls to slash insurance laws and her emphasis on implementing existing regulations reflect a cautious approach to economic policies. Her response to concerns over potential conflicts of interest from her private sector career aimed to reassure lawmakers of her integrity. The implications of her appointment as EU financial services commissioner could impact the stability and competitiveness of the financial sector across Europe. As the hearings progress and decisions are made, it will become clear how Albuquerque’s proposed strategies align with the priorities and expectations of EU lawmakers and financial stakeholders.
