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09 June 2022

This week in "Brussels"



Welcome to our Gold Friends weekly e-mail.

 

My highlights of the week: In a holiday-shortened week, the ECB now takes the stage as Bruegel discussed the risk of fragmenting the euro area while the FT reported on how the ECB plans to avoid potential bond market turmoil. The SRB got a clean bill of health from the ECJ on its resolution of Banco Popular. Unsurprisingly, EFAMA is strongly in favour of a customer-led strategy for retail investors, but InsuranceEurope was rather more circumspect. The European Parliament refused to support the Commission’s package of climate proposals because it felt the proposals had been watered down. ECB’s Panetta saw no room for complacency against cyber threats. CER asked the question on so many people’s mind “why would anyone use a central bank digital currency?” The Northern Ireland protocol still hangs dangerously over UK politics as the legislation to breach the `treaty that Boris wrote’ is getting closer – probably.

Graham Bishop


 

Articles from 3-9 June 2022

Policy impacting Finance

EPC: After Russia’s invasion of Ukraine: Unity is good, but ambition is better : In view of the volatile geopolitical environment, EU leaders no longer have the luxury of waiting for all 27 member states to find a consensus. View Article
Bruegel: Fragmentation risk in the euro area: no easy way out for the European Central Bank : This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 20 June 2022. View Article
FT: ECB to firm up plans to ward off bond market stress : Council members likely to commit to counter any turmoil triggered by higher rates  View Article

Banking Union

EBA consults on Guidelines to resolution authorities on the publication of their approach to implementing the bail-in tool : The Guidelines aim to ensure that a minimum level of harmonised information is made public with regard to the mechanics underpinning the execution of the bail-in tool. The consultation runs until 7 September 2022.  View Article
EBA consults on technical standards on the identification of a group of connected clients : The objective of the definition of a GCC is to identify two or more natural or legal persons who are so closely linked by idiosyncratic risk factors that it is prudent to treat them as a single risk. View Article
SRB statement on EU Court judgments related to the Banco Popular Español resolution : EU Court agrees that SRB decisions on Banco Popular were within the law; Action for damages dismissed; SRB costs to be paid by applicants  View Article
SRB responses to the European Commission’s targeted consultation on the evaluation of state aid rules for banks in difficulty : The evaluation covers the State aid rules for banks in difficulty set out in the various Commission communications that have been adopted since 2008. View Article

Capital Markets Union


EFAMA: EC CfE ON RETAIL INVESTMENT – NEW PACKAGE OF MEASURES TO INCREASE CONSUMER PARTICIPATION IN CAPITAL MARKETS : EFAMA wholeheartedly supports a retail investment strategy that gives EU citizens the necessary tools and the confidence to put their savings to work by investing in capital markets.  View Article
InsuranceEurope:EC retail investment strategy : EC Retail Investment Strategy must account for existing rules, be thoroughly tested and demonstrate proven benefits for consumers View Article
EFAMA supports EC findings on ESAs operation : EFAMA welcomes the decision of the European Commission not to propose legislative changes to the ESA Regulations and concurs that the European Supervisory Agencies have played, and will continue to have, a critical role in the strengthening of the Capital Markets Union. View Article

EFAMA, ICSA & MFA welcome IOSCO Feedback Statement on “Market Data in the Secondary Equity Market” : The executive summary has some valuable insights and recommendations. For example, we fully support the statement though we would suggest an important addition... View Article
ESMA: Final Report CSDR RTS on Settlement Discipline – Suspension of buy-in : ..the application dates of the settlement discipline measures has now been officially published, ESMA presents a proposal for the amendment of the RTS on settlement discipline in order to formally suspend the application of the provisions on the buy-in regime for three years.. View Article

Environmental, Social, Governance (ESG)

LSE: A social approach to climate change: Explaining the adoption of the Just Transition Fund : The EU has established a Just Transition Fund to help support regions and sectors that face socio-economic challenges during the transition to climate neutrality. Anna Kyriazi and Joan Miró explain how the ... its role in highlighting the social policy implications of pursuing a green transition. View Article
POLITICO: Key climate proposals fail to pass European Parliament : MEPs refused to adopt positions on key files following conservative-led efforts to water them down. View Article
PensionsEurope input to EC consultation on ESG ratings : ... welcomes the consultation, shares many of the Commission’s concerns, and welcomes the Commission’s further work to improve the ratings and the functioning of the market; View Article
Council and European Parliament agree to improve gender balance on company boards : The Council and European Parliament today reached a provisional political deal on a new EU law promoting a more balanced gender representation on the boards of listed companies. View Article

Fin Tech Regulation

ECB's Panetta: Adapting to the fast-moving cyber threat landscape: no room for complacency : Introductory remarks by Fabio Panetta, Member of the Executive Board of the ECB, at the seventh meeting of the Euro Cyber Resilience Board for pan-European Financial Infrastructures View Article
SUERF: Cybersecurity and financial stability : As the digital transformation in banking has gathered pace, so have cyber risks to financial stability. The prevalence of cyber attacks is particularly pronounced in the financial system View Article

BIS: Blockchain scalability and the fragmentation of crypto : Permissionless blockchains work by providing monetary incentives to decentralised validators. Yet the mechanism for maintaining these incentives necessarily entails congestion effects and high fees. These high fees encourage the use of alternative chains, leading to a fragmentation of the crypto landscape. View Article
CER: Why would anyone use a central bank digital currency? : Central banks are rushing to pilot their own digital currencies. These may sound exciting. But they may offer users few compelling benefits they do not already enjoy. View Article

Brexit

Cabinet divisions break out over UK plan to override Brexit treaty : Johnson said to have snapped at foreign secretary over legislation to overhaul N Ireland trading arrangements View Article
EIAG: Improving the UK-EU Relationship : The UK-EU relationship since Brexit has been characterised by tension, disputes and disappointments. The EU has sometimes been dogmatic and has succumbed to a corrosive mistrust of UK motivation. View Article
The UK in a changing Europe: Brexit opportunities: Rees-Mogg is going the wrong way about seizing them : The aim this time is to introduce ‘sunset clauses’ for up to 1,500 pieces of retained EU legislation as part of the forthcoming ‘Brexit Freedoms’ Bill...This would impose a five-year ‘expiry date’ on said rules, by which point ministers would have to decide whether to keep, amend or remove them. View Article

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