Capital Markets Union

Euphoria has given way to disillusionment, as many players in the finance industry express their frustration over the EU’s slow progress in deepening the capital markets. But many of the decisive levers for reform actually remain in the hands of national governments.

When Tom Théobald, CEO of Luxembourg for Finance, speaks with international investors, he also sets out the strengths of the EU. In an interview with Börsen-Zeitung, he discusses the importance of CMU, and how the EU approach to regulation can be improved.

MEP René Repasi from the SPD wants to see an acceleration of Capital Markets Union. And he would also like to see the introduction of a new type of corporate legal framework, to promote innovation.

Capital Markets Union was becoming something of an empty phrase, but the Eurogroup has given the term some substance again. However there are still disputes between member states over the details.

François Villeroy de Galhau warns against cutting rates too late by the ECB. In the interview with the Börsen-Zeitung the Governor of the Banque de France also talks about which factors could particularly influence monetary policy in the near future.

Germany's commercial banks have called on the government to introduce extensive reforms to get the economy moving again. And they are pressing for a postponement to the introduction of Basel III.

Federal Chancellor Olaf Scholz (SPD) has promised the German finance industry that he will work towards the further rapid development of Capital Markets Union and Banking Union.

The discussions on Capital Markets Union are regaining momentum. As part of this process, the German Banking Industry Committee and French Banking Federation recently presented a joint position paper to their respective Finance Ministries.

The Capital Markets Union finally has a real chance of being implemented – after years of merely talking about it. Because it's no longer just about bank or market financing. It's about prosperity and security – in other words, it's about the fundamentals.

The banking industry and politicians are advocating a reform of securitisation rules in Europe. Commerzbank Deputy CEO Bettina Orlopp, Barclays Germany CEO Ingrid Hengster and State Secretary Jörg Kukies are confident that a political agreement is within reach.

The building blocks of the Capital Market Union are of great importance to the EU Securities and Markets Authority (ESMA). The head of the authority warns against focusing solely on regulation in the project.

There is a lot of talk about the Capital Markets Union – but little is happening. French Finance Minister Bruno Le Maire has now made a proposal. Some elements of it are not convincing. But at least Le Maire is focussing attention on one crucial point.