Meeting in an inclusive format, the Euro Summit said in a declaration adopted on Friday 22 March it was determined to “urgently speed up” the deepening of the Capital Markets Union (CMU), a “key” project designed to mobilise the substantial financing needed for the green and digital transitions.
The EU27 call on the Member States and the European Union institutions to swiftly implement the measures set out in the Eurogroup’s specific statement to further integrate capital markets in the EU and mobilise private savings to finance the necessary investments (see EUROPE 13368/3). Wishing to be kept regularly informed of the work in progress, they will be taking up the issue again at the European summit on Wednesday 17 and Thursday 18 April in Brussels.
For the President of the European Council, Charles Michel, the issue of investment was “a central point” in the discussions between European leaders on Friday. The CMU project is “an essential piece of the jigsaw (...) for our sovereignty, for strengthening the fabric of SMEs, and for investing in sectors that are critical for the future”, he said.
The President of the European Commission, Ursula von der Leyen, noted that too many European companies are seeking capital outside of the EU because of the “fragmentation” of European markets.
German Chancellor Olaf Scholz was in agreement: “If we look at the major American companies that have been financed and supported to the tune of billions over the years – not by the State, but by the capital market – we must take note of the fact that this happens much more rarely in Europe, even though the money is available”. Furthermore: “We also have to recognise the fact that some European funds are directed to American capital-raising bodies before they are returned to Europe to finance start-ups and growth”. Mr Scholz called for “major reforms” in the EU, citing bankruptcy law and corporate taxation.
Noting the interest aroused by the revival of the “securitisation” of financial products, the President of the Eurogroup, Paschal Donohoe, noted that he would be organising a follow-up dinner for the twenty-seven European finance ministers “in May”. This dinner will probably take place on the fringes of the Eurogroup meeting to be held on Monday 13 May in Brussels.
Regarding fiscal policy, EU leaders stressed the importance of closely coordinating economic policies to ensure the consistent implementation of the reform of the Stability and Growth Pact.
Bulgaria. Elsewhere, the Eurozone summit sent a cautious political signal to Bulgaria, welcoming the progress it has made in adopting the euro, which is expected to take place in January 2025 (see EUROPE 13372/10).
However, Bulgaria is going through a political crisis and needs to regain stability in this respect, something that was acknowledged by the Bulgarian Prime Minister, Nikolaï Denkov, when arriving at the summit on Friday.
See the Eurozone summit declaration: https://aeur.eu/f/bhl (Original version by Mathieu Bion, with Émilie Vanderhulst and editorial staff)