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[EU Banking Reform Blueprint Unveiled: Targeting State Intervention and Releasing €200 Billion in Liquidity] ⑴ The European Commission released a special report on banking competitiveness, directly pointing out that market fragmentation and state-level political intervention in mergers and acquisitions are the core issues hindering European banks from achieving economies of scale. This results in most banks having relatively large domestic markets but lacking sufficient size to compete with international rivals at the EU and global levels. ⑵ The report cites Germany's rejection of UniCredit's acquisition of Commerzbank in June of this year as a typical example, pointing out that such state-level intervention occurs frequently even without objection from regulatory and competition authorities, severely distorting the market logic of cross-border integration. ⑶ The European Commission plans to introduce specific legislative proposals in the first quarter of 2027. Core measures include cracking down on member states' violations of EU merger intervention rules and allowing cross-border banking groups to meet capital and liquidity requirements centrally at the parent bank level, rather than imposing additional constraints on subsidiaries under the current system. This is estimated to release approximately €230 billion in available liquid assets. (4) Industry feedback was mixed. The French Banking Association affirmed the report's direction but called for more concrete actions regarding regulatory coordination and limiting country-specific rules. The CEO of Deutsche Bank urged accelerating adjustments to capital floor standards and reassessing the financial stability buffer, emphasizing the urgency of the timeframe. (5) From a market psychology perspective, if the reforms are implemented, they will significantly enhance the flexibility of large European banks in allocating cross-border resources. However, member states' sensitivity to control over their domestic financial institutions and the renewed discussions on deposit insurance schemes remain focal points of political maneuvering, resulting in considerable uncertainty regarding the strength and pace of the reforms.