European supervisory shortcomings Against this background, the EU regulatory and supervisory framework, which is based on a set of EU directives and some mechanisms for cooperation designed several years ago, does not seem to have worked as expected. Let me mention three shortcomings.
First, even though we have a single market in Europe, there remains substantial room for discretion in the transposition of EU directives into national legislation. This latitude can be used by national legislators to improve the competitiveness of the institutions and infrastructures in their own countries. The Lamfalussy framework, which was supposed to promote the convergence of regulatory and supervisory practices, has been insufficient.