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We should not forget that Europe's financial centres also have key roles to play in the post-crisis recovery in at least three aspects:
First, they should be capable of meeting the needs of and supporting their economies and societies. The quality of services they provide to domestic firms is essential to the efficiency and competitiveness of their countries.
Secondly, financial centres should be key elements of the European single market. But their role should go much further than only facilitating free movement of capital. More specifically they should perform at least the following functions:
As a final point, we cannot forget that Europe's financial centres are a central part of the global financial system. This is because they provide a global hub for financial institutions, firms and investors. And - as such - they secure for everyone the benefits that wider, deeper and more integrated markets can offer. In this context, a very important question needs to be asked: How can we ensure that Europe's financial centres are able to rise to today's challenges?
My answer to this question is based on two main pillars of reform:
Let me say a little more on this reform starting with the first pillar. The EU is approaching the end of its largest ever programme of financial services reform. Financial markets have been at the heart of the recent financial crisis. The crisis exposed serious inadequacies, such as:
As a result, it became clear that the financial services sector could not escape reforms. Moreover, the experiences during the crisis have clearly demonstrated that we need common European rules.
The so-called single rulebook will contribute to creating a more stable, transparent and competitive financial sector in Europe. Against this backdrop, around 30 targeted measures have been proposed by the European Commission. My goal is for all new legislation to be in force by 2013. This considerable reform programme now addresses all the key commitments agreed at the G20. It puts Europe at the forefront of the global effort to positively transform the financial sector and financial centres.
Given the state of public finances, it is clear that not all long-term financing needs can or should be met by European taxpayers. Here again the financial centres have a key role to play. They should perform at least three tasks:
In this respect, my services are currently examining how to ensure the financial sector is fulfilling these roles as efficiently and effectively as possible. And I plan to launch a broad consultation on this subject around the end of the year. In the meantime, I have already taken action in relation to investment funds, which play a crucial role in financing the European economy.
More specifically, the Commission has proposed to create a European market for venture capital and socially-responsible investment funds. Such a market will allow these funds to raise money and to invest anywhere in the EU. This will increase chances for start-ups and companies involved in social and environmental activities.
I also want to build further on the success of the UCITS brand. Some Member States have rules in place which facilitate access to long-term investments in private companies for retail investors. Drawing on this experience, my services are currently reflecting on whether an EU approach in this context could also help boosting growth in Europe.