Euro area finance ministers have called for more integrated supervision of capital markets across the European Union, with the aim of strengthening risk-sharing and reducing bureaucracy for companies and investors.
According to a draft statement seen by Bloomberg, ministers want the European Commission, the EU’s regulatory arm, to present proposals for single supervision for entities that want it and have cross-border activity. to significant. This would be done by the European Securities and Markets Authority.
Another option is to have so-called supervisory colleges coordinated by ESMA on a case-by-case basis in order to reduce compliance costs for companies. A third possibility would be the sole supervision of entities from third countries and the authorization of their documents.
The Eurogroup proposals, which are being discussed by all EU finance ministers, are part of a wish list to try to make progress on the long-delayed capital markets union during the next parliamentary term of five years of the EU. The aim is to provide companies with a greater choice of financing, as well as helping to pay for ecological and digital transitions. Unlike the US, the majority of corporate financing needs in the EU are provided by the banking sector.
“The lack of a deep and functional market for venture capital in Europe – particularly in the start-up and expansion phase of companies, but also for those in more mature development stages – continues to force many of the more dynamic companies and innovative companies seek financing abroad,” states the draft report.
Ministers also called for greater convergence of listing requirements across Europe to reduce costs and facilitate access to equity financing.
They stated that the commission should analyze obstacles to the consolidation of the stock exchange and better integration of market infrastructures, in order to boost centers of specialization, such as green obligations.
EU finance ministers are due to discuss the draft declaration at an informal meeting in Ghent, Belgium, on February 23. The proposals should be adopted in March.
2024-02-16 12:13:16