Part III

Subsidiarity means that what can be achieved at a local level of authority should not be achieved at a higher level.

The European concept of subsidiarity is closely linked to the principles of proportionality and necessity. Any action by the Union must not go beyond what is necessary to achieve the objectives set out in the Treaties. The novelty introduced by the Treaty of Lisbon is the Protocol on the Application of the Principles of Subsidiarity and Proportionality.

The current legislative framework is based on minimum harmonization and mutual recognition.

The most important measure in this area, which had a significant impact on the financial sector, was the MiFID Directive. However, the implementation of this directive proved very difficult and led to an ongoing struggle between the Commission and the Member States over the implementation of measures adopted at the EU level in the field of financial services.

As a result of this lengthy implementation process, some of the infringement proceedings were concluded with decisions by the Court of Justice.

Keywords: the principle of subsidiarity in the EU, the European legal framework for capital markets