The European financial landscape is abuzz with significant discussions and potential shifts that could reshape the sector for years to come. From new regulations to groundbreaking initiatives, understanding these developments is crucial for stakeholders, especially those championing innovation and competitiveness. Here’s a rundown of what’s currently high on the agenda, and what it means for the our ecosystem.

PSD3/PSR and FIDA: Still at the Top of the Policy Agenda

The ongoing discussions around the Payment Services Directive/Regulation (PSD/R) and the Financial Data Access (FIDA) framework continue to be a top priority. A general sentiment among policymakers indicates a growing disinclination to further entrench the dominant position of the traditional banking sector.

Combined with the recent ECON report on “Safeguarding and Promoting Financial Stability Amid Economic Uncertainties”, there is a clear appetite to explore new avenues for innovation and diversification in the financial sector. For EDFA, this context reinforces the relevance of our work: a strong and unified voice for fintech at both national and European levels is more critical than ever.

The “28th Legal Regime”: A Glimpse of EU-Wide Regulatory Harmonization

The so-called 28th Legal Regime is also gaining traction across European policymaking circles. This concept envisions an optional, EU-wide legal framework that would sit alongside national legislation in all 27 Member States. It is designed to simplify cross-border operations, particularly for startups and scaleups by providing a harmonized regulatory option.

While the proposal remains in an exploratory phase, its inclusion in the EU Competitiveness Compass (and its endorsement in the Letta and Draghi reports) suggests strong political momentum. We expect the first concrete steps to be included in the EU Innovation Act, anticipated in late 2025 or early 2026.

Digital Euro: Legislative Design and Implementation Priorities

The Digital Euro initiative, now in its preparatory phase, is another key file moving through the ECON Committee. Based on a two-year investigation led by the European Central Bank (ECB), the upcoming legislative package aims to:

• Establish the Digital Euro as a legal tender, complementing physical cash.
• Ensure universal acceptance across the Eurozone for online and offline transactions.
• Guarantee privacy through strong pseudonymization and encryption protocols.
• Prevent the Digital Euro from becoming a store of value by prohibiting interest accrual on holdings.

As the legal and operational frameworks evolve, EDFA will continue monitoring the initiative’s implications for the fintech sector and will work with members to ensure the voice of innovators is well represented.

Fintech: A Central Player in Europe’s Competitiveness Agenda

“Fintech” is no longer just a buzzword — it is becoming an anchor of Europe’s broader strategy to boost competitiveness and unlock financial market potential. Within this narrative, digital finance providers, SMEs, and startups are seen as key drivers of transformation, particularly in areas where traditional banking has struggled to innovate at speed.

For EDFA, this trend offers a timely opportunity. With a strong membership base, we are working to shape this narrative, both locally through our national members, and centrally at the EU level.

In this context, the concept of “debanking” is gradually shifting from a risk narrative (as previously outlined in EBA guidelines) to an opportunity for disruption. Fintech is increasingly recognized as a strategic enabler of resilience, inclusion, and agility in the EU financial ecosystem.

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