Although progress has been made through the successful completion of the Financial Services Action Plan (FSAP), the Commission observed that the EU financial services industry (banking, insurance, securities, asset management) still has strong untapped economic and employment growth potential.

The Commission's new strategy explores the best ways to effectively deliver further benefits of financial integration to industry and consumers alike. Its priorities for the coming five years are as follows:

• To dynamically consolidate progress and ensure sound implementation and enforcement of existing rules;
• To drive through the better regulation principles into all policy making;
• To enhance supervisory convergence;
• To create more competition between service providers, especially those active in retail markets; and
• To expand the EU's external influence in globalizing capital markets.

Internal Market Commissioner Charlie McCreevy explained that:

"European financial integration has really moved forward in the last five years. The challenge now is to consolidate progress and work together on applying the better regulatory disciplines. Our aim should be to create the best financial framework in the world."

"It means creating real, tangible benefits for the citizens and businesses of Europe through lower capital costs, better pensions, and cheaper, safer retail financial products."

"Our new strategy is practical, economics driven and citizen focused. Only in a few, targeted areas are new initiatives foreseen."