Category Archives: eurozone

Capital Markets Union: stronger and more integrated financial markets

 

President Juncker underlined the importance of the Capital Markets Union, one of the Commission’s flagship projects, in his State of the Union Address.

European consumers, investors and businesses will benefit from stronger and more integrated financial markets, thanks to plans by the Commission to reform the EU’s supervisory architecture.The European Commission is today proposing reforms to pave the way for further financial integration and a full Capital Markets Union, to promote jobs, growth and investments in Europe and to strengthen the Economic and Monetary Union.

The proposals also include steps to foster the development of financial technologies (FinTech) and to make sure that sustainability considerations are systematically taken into account in supervisory practices at the European level. Once adopted, the proposals will improve the mandates, governance and funding of the ESAs for banking (European Banking Authority, EBA), for securities and financial markets (European Securities and Markets Authority, ESMA), and for insurance and pensions (European Insurance and Occupational Pensions Authority, EIOPA). To ensure a uniform application of EU rules and promote a true Capital Markets Union, the proposals also entrust ESMA with direct supervisory power in specific financial sectors. In addition, the Commission is proposing targeted changes to the composition and organisation of the ESRB, which monitors stability risks for the financial system as a whole.

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EU promote sustainable finance for sustainable investment

The Commission is hosting a major event to explore how best to use finance to promote sustainable investments and facilitate the transition to a low-carbon economy within the context of the Capital Markets Union.

This is part of the European Union’s efforts to turn climate change, environmental and sustainable policy goals into tangible results. The EU is taking the lead in this area and needs to develop an overarching strategy to better align capital flows with a pathway to sustainable development and growth. That is why the European Commission established at the end of 2016 the High-Level Expert Group on Sustainable Finance as part of its commitment to the Paris Climate Agreement and its work on Capital Markets Union. After six months of intensive work, the Expert Group summarised its first results and policy options in an interim report.  Today’s public hearing will give a wide range of participants the occasion to share their views on barriers to and possible solutions to ensure an increased uptake of sustainable finance.  Vice-President Valdis Dombrovskis, responsible for Financial Stability, Financial Services and Capital Markets Union, opened the event in Brussels and Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, will give a keynote speech. The public hearing will be accompanied by the launch of a questionnaire by the High Level Expert Group.