Brussels, 01/10/2015 (Agence Europe) - The main political groups at the European Parliament are pleased with the European Commission's action plan for a Capital Markets Union (CUM) although the Left in Europe warns that this must not lead to deregulation.
“We need to make sure that the abundant liquidity and resources available in Europe are put to work for the benefit of investment in the real economy and especially for SMEs,” said the chair of the European Parliament's economic and monetary affairs committee, Roberto Gualtieri, adding: “At the same time it is important not to repeat the mistakes of the past. We must ensure that the new legislation includes the necessary safeguards for financial stability and a strong EU supervision.” Burkhard Balz (EPP, Germany) warned against copying and pasting ideas from the United States: “We do not want to Americanise businesses' access to finance. But both capital markets and traditional financing channels must better serve the small business sector and investors.” British Conservative Kay Swinburne said: “I hope this marks a phase where the European Commission is no longer looking at knee-jerk financial services law-making and instead asking how it can break down those barriers to business growth in the single market.” She said CMU must establish the right conditions for the development of alternative financial products via better functioning of the capital and bond markets for small business and the growth of new financing such as crowd-funding and peer-to-peer platforms. French liberal Sylvie Goulard said: “We need a comprehensive agenda and a tight schedule (...) No topics should be left off the negotiating table, including controversial ones like taxation and insolvency law.”
European left keeps its guard up
On behalf of the S&D group, Portugal's Elisa Ferreira said: “The Capital Markets Union (CMU) should be seen as an opportunity to harmonise legislation and achieve a common European capital market. We support efforts to revamp credit through innovative forms of business financing; simple, transparent and standardised securitisation; harmonising accounting standards for SMEs; measures to supporting venture capital or building a pan-European covered bond framework, but we will remain vigilant in order to ensure that the CMU does not undermine investor protection and becomes a tool to deregulate the financial sector.” In the same vein, the Greens/EFA welcomed the Commission's initiative: “It is in the interest of consumers for Europe to develop transparent, cost-effective financial products. Creating a Capital Markets Union is a crucial initiative for Europe but the project cannot be a smokescreen for a wave of deregulation for finance markets,” warned Sven Giegold. British Green MEP Molly Scott Cato added: “The proposal to further reduce the level of capital requirements for shareholdings in the framework of the Insolvency II law (see EUROPE 11400).is an unacceptable gift to the French insurance industry.” Commenting on the draft legislation to reinvigorate simple and transparent securitisation, she said: “Capital requirements must be linked to risk. Institutions should be required to hold a minimum of 10% capital in these complex products to ensure they have an interest in the quality of the product and managing the risk.” (Original version in French by Mathieu Bion)