Economy needs more capital as a result of the pandemic, Commission sets out important key points, Plans should be swiftly implemented
The European Commission has today unveiled its action plan for
creating capital markets union. The aim of the plan is to strengthen and
expand European capital markets. “An efficient, single capital market
is more urgently needed than ever,” said Christian Ossig, Chief
Executive of the Association of German Banks. “We need it to finance
post-COVID-19 reconstruction and the modernisation of the European
economy and to permanently ensure Europe’s competitiveness and
sovereignty. The European Commission has now laid important cornerstones
of the project.” Among the 16 action points, the proposals for revising
securitisation rules were particularly notable, in Ossig’s view. They
would give banks more financial scope to lend to businesses.
Improving cross-border securities settlement and greater
harmonisation of the rules on withholding tax refunds would also
facilitate cross-border investment in the EU.
In light of the United Kingdom’s withdrawal from the European Union,
capital markets union should not be put off any longer, Ossig warned.
While it would not be possible to complete capital markets union in a
short space of time, the political momentum should be used to achieve
real progress.
True capital markets union would also benefit citizens. It would help
them to participate in the growth of the European economy. This was
important so that they could build up assets against the backdrop of
persistently low interest rates and strengthen their provision for old
age, said Ossig. The Commission had rightly recognised that this could
not least be supported by better financial education.
AGB
© BDB - Bundesverband Deutscher Banken
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