Maria Luís Albuquerque, the pick to be EU financial services commissioner for Portugal, rejected calls to slash insurance laws to boost the economy during a three-hour hearing on Wednesday. She also addressed conflict-of-interest fears from her own private sector career, stating that she would not defend a race to the bottom when it comes to financial stability. Albuquerque emphasized the need for the proper framework to be implemented by international partners, particularly in light of post-crisis banking rules that must be enforced despite concerns over potential regulatory rollbacks under a Trump administration.
Albuquerque’s comments came in response to questions from MEP Jonás Fernández about protecting Europe against potential negative impacts from changes in US bank regulation under the Trump administration. There were concerns that differing regulatory rulebooks between the EU and US could lead to unwinding financial protections, especially if the US did not adhere to international norms set by the Basel Committee on Banking Supervision. Albuquerque defended her own transition from government to the private sector, stating that the ethics committee of the Portuguese Parliament had already assessed and cleared her of any conflicts of interest while working for companies like Arrow Global and Morgan Stanley.
During the hearing, Albuquerque proposed little in the way of new measures, choosing instead to focus on implementing existing laws. Despite calls from some quarters to reduce obligations on insurers and pension funds to free up investment capital for innovative companies, Albuquerque emphasized the need to give time for recent reforms, such as those under Solvency 2, to take effect. Her approach is likely to be welcomed by the financial sector, which has expressed concerns about the impact of recent legislation on business growth. Albuquerque’s stance on preserving financial stability while promoting competitiveness aligns with broader efforts to prevent a repeat of the 2008 financial crisis.
The EU has experienced delays in implementing measures to strengthen banks against market volatility due to uncertainties stemming from the US regulatory landscape. This has created challenges for financial institutions operating across different jurisdictions and raised fears of regulatory backtracking under a Trump administration. Albuquerque’s commitment to upholding existing laws and international norms is seen as crucial in maintaining financial stability and preventing a race to the bottom in regulatory standards. Her responses during the hearing reflected a cautious approach to balancing regulatory obligations with economic competitiveness in light of global uncertainties.
The European Parliament is currently holding hearings for 26 candidates to serve as European Commissioners, with Albuquerque among those seeking approval for the position of EU financial services commissioner. Concerns have been raised about the potential appointment of Swedish conservative Jessika Roswall to lead the European Green Deal, indicating the importance of selecting candidates who can effectively address key policy challenges facing the EU. If approved by the Parliament, Albuquerque could soon replace Ireland’s Mairead McGuinness as the EU’s top financial services official, taking on the responsibility of navigating complex financial regulations and promoting sustainable economic growth within the EU.
