Brussels, 07/07/2015 (Agence Europe) - The European Parliament supports the European Commission's pragmatic and proportionate approach to setting in place a Capital Markets Union (CMU) by 2019.
The Capital Markets Union is a “critical” element of a broader strategy aiming to support growth in Europe by means of a “diversification” of funding channels to the real economy, said the chair of the committee on economic and monetary affairs of the EP, Italy's Roberto Gualtieri, at a plenary session debate on Monday 6 July. He expressed the “firm” support of the European Parliament to this project, which was launched by the European Commission in late February (see EUROPE 11330 and 11256). “There will be no blank cheques”, however, warned Burkhard Balz (EPP, Germany). He stressed that a clearly marked out, genuinely “European approach” is required, that the errors of the past - particularly as regards securitisation - must be avoided and that the financial sector must be involved in the initiative.
The planned CMU will identify immediate initiatives, such as revitalising a market for simple and transparent security products, which will help to take some of the financial strain off the banks, the revision of the directive requiring businesses wishing to raise capital to publish a standard prospectus and the modification of the insurance prudential rules ('Solvency II'), to breathe new life into investment in infrastructure. Following the publication, in “September”, of our action plan, we will present these proposals “shortly afterwards”, said the Commissioner for Financial Services, Jonathan Hill. He is in favour of a “proportionate” approach which takes account of the “overall impact” of the future financial rules on economic operators. He stressed that the CMU was a project “for all 28 member states” and that the countries with the least developed capital markets may well have the most to gain, as it will make it easier for capital flows to cross borders. He went on to urge the MEPs not to “misrepresent” the position of the City of London which, he explained, is well aware of the potential “benefits” from the creation of a single capital market in Europe. (Mathieu Bion)