Definition
The European Commission is the executive of the European Union.
It is the body that proposes the directives and regulations — PSD2, its revision PSD3, FIDA, MiCA, DORA — that the member states must then transpose or apply directly.
Commission, Parliament, Council: who decides
The "European legislator" is in fact three institutions:
- Commission — proposes the texts (a near-exclusive legislative initiative).
- Parliament — votes on the texts (elected by universal suffrage).
- Council of the EU — also votes, representing the member states' governments.
For a directive like PSD3 to enter into force, all three must agree, via the so-called trilogue procedure.
Commission, EBA, ACPR
Three tiers in the chain:
- Commission — makes the framework law (directives, regulations).
- EBA — translates it into technical rules (RTS, guidelines).
- ACPR (and national counterparts) — applies it on the ground (licensing, supervision, sanctions).
What the Commission does for fintech
- Proposes the structuring texts: PSD2 (2015), PSD3 (proposed in 2023), FIDA (2023), MiCA (2023), DORA (2025).
- Mandates the EBA to draft the RTS.
- Monitors transposition by the states and can sanction a defaulting state.
- Launches public consultations that fintechs can contribute to.
- Steers strategies (Digital Finance Strategy, Retail Payments Strategy) that set the course for 5 to 10 years.
What the Commission does not do
- It does not vote alone: Parliament and Council are mandatory.
- It does not grant licences: that is the ACPR or its national equivalent.
- It does not write the RTS: that is the EBA.
- It does not supervise players day to day: the national authorities do.
In the PSD2 ecosystem
The Commission sits upstream of the whole regulatory chain. To anticipate what will affect fintech in 2 to 5 years, it is its legislative proposals and digital strategies that you should follow.
Real-world examples
- PSD2 (2015): the Commission established the principle of mandatory Open Banking — the origin of the whole current AISP/PISP market.
- PSD3 and PSR (2023): a proposal aimed at strengthening the fight against fraud, clarifying banks' API obligations and better protecting consumers.
- FIDA (2023): an extension of the Open Banking model to all financial data (insurance, savings, credit) — the next great European wave.
- Anticipating: following the DG FISMA public consultations remains the best way for a fintech to influence the texts before they are set in stone.