Brussels (dpa) – The European Commission is advocating for a comprehensive overhaul and modernization of the intricate financial market regulations in Germany and other EU member states. A reform package unveiled in Brussels aims to enhance competitiveness by standardizing regulations for trading venues and simplifying supervisory processes.
Under the proposed changes, supervisory authority over major cross-border entities would be given to the European Securities and Markets Authority (ESMA) based in Paris. This includes oversight of certain trading venues, all crypto services providers, and central securities depositories, which handle the custody and transfer of securities.
Potential savings of ten trillion euros
The goal of the proposed reforms is to establish a financially attractive market on a global scale. The EU Commission emphasizes the importance of providing citizens with more affordable and accessible investment opportunities across the EU, noting that approximately 10 trillion euros of individual savings are currently held in bank accounts. While these deposits are secure, they often yield low returns compared to securities investments.
EU Commissioner Maria Luís Albuquerque stated in Brussels that creating a true single financial market would offer individuals improved prospects for wealth growth. She noted that Europe has long accepted a fragmented market that hampers economic progress.
Parliament and member states to decide
The European Parliament and the Council of member states will now review the EU Commission’s proposals, with hopes for adoption and implementation.
Initial responses from parliament members have been largely favorable. The economic and financial policy spokesperson for the European People’s Party group, Markus Ferber, called the package an opportunity for significant advancement. He remarked, “Our capital markets are fragmented, small, and illiquid compared to the USA—this adversely affects growth, innovation, and competitiveness in Europe daily.” German MEP Rasmus Andresen from the Greens expressed support for strong, centralized financial market supervision, welcoming the Commission’s plan to assign direct oversight of key market actors to ESMA. (4 December)
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