The effective enforcement of EU Capital Markets Law is critical for ensuring financial stability, protecting investors, and maintaining fair and competitive markets throughout the European Union. This document identifies key challenges in the current regulatory landscape, including the complexity of laws, the diversity of enforcement practices across member states, and the lack of harmonization in financial regulations. We propose a comprehensive approach to enhance enforcement effectiveness through simplification of the legal framework, adoption of preventive regulatory measures, and improved coordination among national and EU-level supervisory authorities. These strategies are designed to reduce the regulatory burden, facilitate compliance, and ensure more uniform enforcement across the EU. Key recommendations include:

1. Simplification of Regulations: Streamline existing laws and regulations to eliminate redundancies and clarify obligations, making them easier to enforce and comply with.

2. Preventive Approaches to Regulation: Shift the regulatory focus from a primarily reactive to a more proactive stance, emphasizing early detection of potential compliance issues to prevent violations.

3. Enhanced Supervisory Coordination: Foster closer collaboration among the EU's financial supervisory bodies to ensure consistent application of regulations and share best enforcement practices.

The ultimate goal of these recommendations is to create a more integrated, efficient, and effective regulatory framework for the EU’s capital markets, aligning with broader efforts to strengthen the European financial system and enhance its global competitiveness. This document lays the foundation for a series of actionable steps that policymakers and regulatory authorities can adopt to achieve these objectives.