Mairead McGuinness took office as European Commissioner for financial stability, financial services and the capital markets union on 12 October 2020 – taking over from Executive Vice-president Valdis Dombrovskis, who is now also the new European Commissioner for trade. An Irish politician and member of Fine Gael, Ms. McGuinness served as First Vice-President of the European Parliament, beginning in 2017. As an MEP, she covered many different policy areas, from unfair trading practices in the food supply chain, to reforming legislation on medical devices.

At her hearing before the European Parliament committee on economic and monetary affairs on 2 October, Ms. McGuinness recalled chairing a special parliamentary committee looking into the crisis at the Equitable Life Assurance Society some years ago, which showed her the importance of putting people front and centre. This is an approach that she brings to her new position, where she wants to ensure the strength and stability of the financial sector – not just for its own sake, but also so it can deliver for society and the environment. ‘People are at the heart of my vision,’ Ms. McGuinness says, and this could be seen as she set out her priorities.

A banking union that provides stability for households and SMEs: Progress on the banking union has slowed in recent years and one of Ms. McGuinness’ priorities is to inject fresh energy into its completion. She underlined how vital completing the banking union is for the EU’s financial stability, for the resilience of the euro area and to strengthen the international role of the euro.   

A capital markets union at the service of all: In the light of the Covid-19 pandemic, building a capital markets union is more important than ever. Lockdowns and the lifting and re-introducing of restrictions is having an impact on businesses, which are suffering. Ms. McGuinness highlighted the importance of the greater diversity of funding for European companies, particularly SMEs and start-ups, that a strong capital market union offers. It would also help reduce the barriers that discourage cross-border activity, and so provide more opportunities for savers and investors alike.  

A financial system that serves society holistically and takes seriously its responsibility to address climate and environmental challenges: Europe – and the world – is in a climate emergency that requires fundamental changes. ‘Our goal is for the EU to be climate neutral by 2050,’ Ms. McGuinness said during the hearing. However, she recognised that public financing alone will not be enough to reach this target, and more private investment is needed. Specifically, private investments that foster a green recovery, promote a more circular economy and have sustainability at their core. The taxonomy regulation, Ms. McGuinness, said is a ‘key step in clarifying for investors and companies what economic activities are green’. She said that the new action plan on sustainable finance would be a priority. 

A new digital finance strategy that stimulates innovation while being alert to the risks: Ms. McGuinness underlines the importance of the DG’s work in this area – in particular the recently adopted digital finance package and the retail payments strategy – at a time when there are more and more FinTech providers and digital financial transactions, increasing online shopping and contactless payments. The accelerating pace of digital innovation brings both opportunities and risks, for instance cyber-attacks. And the emerging market in crypto assets will need common EU rules and strong supervision.

A fair financial system with zero tolerance for money laundering: In her hearing, Ms. McGuinness said Europe has to be tougher, to secure the integrity of the EU financial system in order to stop money laundering. She said the new anti-money laundering action plan adopted in May is an important step, and that she will continue working towards a legislative package in 2021.

A stronger financial sector that supports Europe’s place in an uncertain world: ‘Never before have the fragilities of the world we took for granted been so exposed as in the pandemic,’ Ms. McGuinness said, and stressed the importance of protecting the values on which the EU is founded. She said that she will work to ensure a credible and responsive EU sanctions framework. 'To be open to the world, we also need to be strong and secure at home.’

Read the full hearing before the European Parliament committee on economic and monetary affairs