Abstract

Forming a common European monetary policy beginning in 1986, the European Community single market program, whose goal is to establish an efficient, competitive rich community of a single financial market, to promote regional economic growth. Its development within the region has experienced financial liberalization under the Financial Services Action Plan and the rules of harmony of the two phases, to promote the improvement of EU financial integration, financial services market competition and improved efficiency. However, the construction of the EU single financial market integration is not balanced, there are still many other issues, the EU authorities in the financial services action plan, based on the financial sector within the EU to promote a dynamic restructuring process, adjusting the financial regulatory thinking, with a global perspective dealing with internal financial problems, financial development to achieve the established goals. The EU common financial policy was emerged under the SMP which started since 1986. The target of the policy is to construct the efficient, competitive EU single financial market to drive the economic growth. In the recent 20 years, the common policy experienced two phases of development as the financial liberalization and rules harmonization. The implementation of policy increased the degree of EU financial market integration, financial market competition and efficiency. Whereas, there exist difficulties as the uneven integration in different market segments and others. To overcome these challenges, the EU relevant authorities are adjusting the policy approach on the implementation of FSAPs. They will facilitate the dynamic consolidation of financial service in EU, adjust the regulatory approaches, and handle the internal financial issues in global perspective, so as to achieve the defined target