International Capital Market Association annual meeting
I'm glad I'm here because we're talking now in a very serious way about Capital Markets Union, the Capital Markets Union, the CMU project.
And there's a very good reason why this is front and centre of all of our attention.
Because we are recognising the very significant investment needs in the European Union.
We need to build a more sustainable economy and society.
And the public purse can help, but it will not be the main source of funding for this sustainability agenda. And the figures are enormous.
So that's why I will talk a lot about this project, the state of play, and where we need to get to.
I'll also talk briefly about the wider financial services agenda around sustainability and digitalisation.
I think we all now realise that the word competitiveness is centre stage.
I think there's a realisation because of recent events that Europe and the economy and our businesses are not competing as well as they should at the global level.
There is growth, and we saw the recent spring forecast, but it's sluggish.
And we're living in a much more uncertain world, and it's going to be that way, I think, for some time to come. We've just been having this conversation.
There's huge geopolitical tensions, there's fragmentation across sectors, including in finance.
And we have this overarching and long-standing challenge of climate change, and it will not go away.
It will get worse and be more costly if we don't target and address it today.
I've mentioned the fact that the CMU project is in sharp focus.
Today, we have capital markets in Europe, deeply divided and very fragmented.
And therefore, we need to come together in a way to add value and build on something stronger.
It is harder than it should be for investors to invest in another EU country, and this is 30 years after the establishment of the single market, and the reason is we don't have a single market for capital.
It's harder than it should be for companies to find different sources of investment. Equity, indeed bonds were mentioned as well.
And also to get investment when they scale up, and indeed very often when they scale up, they go elsewhere.
And this is something we have to be mindful of and offer alternatives.
It's much harder than it should be for private investment to flow towards innovation and innovative companies.
And the aim of CMU, it's not a glory project, this is a vital project for Europe, is to address all of those issues.
And I would say, you know, previous Commissions and indeed this mandate, we've achieved a lot in the five years.
We have the European Single Access Point, so a central online portal for financial and sustainability information on companies and investment products.
We will soon have a consolidated tape for trading data, giving investors a really comprehensive view of trading information from venues across the EU.
We're moving fast on implementation, and I just want to thank ESMA for preparing the first set of consultations, including on bond deferrals, which went live yesterday.
The new Listing Act will make it easier for companies to list, and I'm thinking especially of our SME community.
And just a few days ago, Member States agreed on the so-called FASTER proposal to make withholding tax procedures faster and more efficient.
So this is progress, and we have achieved a good deal, but we have a lot more that we have to do and that we should do.
And the good news is that political attention is sharply focused on finance in the future. So it's focused on Capital Markets Union.
A statement from the EU finance ministers in the Eurogroup, which chaired by President Pascal Donoghue, is really strong on CMU – I mean a bit nuanced in places, but in the right direction.
We've had conclusions – I think this is really significant – from EU leaders at the European Council meetings, both in March and in April.
The ECB in March also underlined the importance of achieving a single market for capital.
And we have a number of reports already highlighting the importance of CMU and what we need to do to get there, including the very recent report from the former Italian Prime Minister Enrico Letta.
He's suggesting to create a Savings and Investment Union, so there's lots of ideas.
I mean, but it's a very simple truth. We need to mobilise savings. €33 trillion of savings in banks, not earning for any of us, could do more and could do much better and could invest in this future that we talk of.
I can't prejudge what the next Commission will do, but I will leave some footnotes for them to read.
But there are some issues that should be addressed.
So right now, the Commission is analysing how best to revive the EU securitisation market, to make it more attractive for issuers and investors alike.
And I can confirm that we will launch a public consultation in the autumn to ensure that we can act as soon as possible to scale up the EU securitisation market.
There's another issue, European-level supervision.
It's a topic for discussion on which there are many different views. It is complex politically.
For me, though, it's very difficult to envisage a genuine single market for capital with 27 or more national supervisors.
So when a company operates in several Member States and has to deal with several regulators, each of them may have slightly different interpretations.
So when we talk about competitiveness and cutting red tape, we have to realise that national supervision is not always efficient.
Now, it's also True to say you cannot bring in single supervision overnight.
You have to take account of the political realities, but we need to think about this over time.
And we need to try and encourage those who are resisting to understand that this is not a situation – and I say this very clearly – of one Member State gaining and another losing.
We're trying to add value and lift CMU to a level where everyone gains from it.
So all of these topics, no matter how difficult they are, have to be spoken about.
So we could, for example, start with groups or market infrastructures providing services across the whole of the single market.
So look at supervising those at a central level.
And indeed, I haven't had time to read the report, but I've received it from ESMA on their views around capital markets just into my inbox this evening.
We need to look at pensions.
The question is how to increase retail investor participation and scale up the role of EU pension funds in capital markets.
Because this would significantly increase the size of EU capital markets.
And taxation, we could look at the role of tax incentives for individuals investing in capital markets, making our capital markets more attractive for corporates to raise equity.
But there is a bottom line.
There always is.
And I say again very clearly, while the enthusiasm for CMU is so welcome, my lived experience over the past five years, well four-ish, has shown that support for the overall goals is one thing.
But getting specific measures across the line is a different story.
And as we all know, saying is much easier than doing.
And frankly, I think we're past the time of saying we need to do and do a lot.
But I'll give you an example of my slight frustration around these issues.
A year and a half ago, I was on a podium in the Commission building announcing a proposal to harmonise targeted areas of insolvency proceedings, including simplifying proceedings for micro enterprises and more consistent procedures for all companies.
And yet, we are still waiting on the Member States and the European Parliament to adopt their positions and to come to an agreement.
And as you know, there's European Parliament elections, so this pushes that further down the line, and yet it is so important.
Or other proposals that we did manage to reach agreement on.
And here, too often, there is a lack of ambition and an unwillingness to put aside vested national interests.
But I do live in hope for the next mandate.
I also live in the real world.
I come from the European Parliament. I served there for 16 years, so I understand the politics of all of this.
But I think our citizens will not thank us if we fail to deliver the financing to actually fund the projects and the transition that we are encouraging them to engage in.
And I think that might motivate us to do much more.
So the new Commission and the new Parliament really have a huge responsibility.
I want to briefly mention the area of post-trade.
Just briefly then on this topic, we have this conversation about shortening the settlement cycle.
We have a clear direction of travel, shorter settlement.
The question of T+1, as I've said many times, is not if, but when, and indeed how.
In future, an adjustment to a shorter settlement cycle can only improve the efficiency and the competitiveness of our capital markets.
And again, ESMA has done work with us on this.
And looking then at the international picture, every jurisdiction has to assess what works best for them.
And we're open to discussing how we might reach consensus on timing across the European continent.
I have a little bit to say about sustainable finance, but I don't want to interrupt the party.
Very briefly, if we get our CMU in place, we need to make sure the money goes to where it's needed.
So you need a sustainable finance framework.
It looks a bit complicated until you sit down and analyse that it is about information, companies providing sustainability information, investors being able to get that information and make investment choices.
And you know the details of how we do that.
We've done a great deal, including an EU Green Bond Standard that's voluntary.
I know you've done a lot of work on this as well.
My priority is to make our framework usable and as simple as possible, to reduce the burden, to encourage the full use of it, including for those who don't have to, like our SMEs, so that they can gain from this process.
And we want, of course, and we welcome feedback.
Transition finance is hugely important in this area.
And also a third topic, which is emphasising inclusiveness.
So here we work with our sustainable finance platform and our services, again with our SMEs, because they're a bit nervous about all of this.
And I've been trying to convince them that, look, their future is towards sustainability.
We're trying to help you get there.
And maybe also to look at incentives, so how blended finance instruments might attract private investment.
And clearly prioritising international cooperation so that we have Europe consistent with what's happening internationally, even if you go a little further and perhaps faster.
I will mention digital finance, digital euro.
All of these things are part of the evolution of finance.
And we work very closely with the ECB, including on trying to have the proper narrative for citizens.
I defend the right of all of us to have access to cash and to be able to use cash.
But I also want to leave a future where we might need and require a digital euro, public money in digital form.
You know, we have experimented with the DLT pilot project. It's quite interesting what's happening there.
And I want to say to those who may not be sure, the DLT pilot will remain in place unless and until there's a new legislative proposal to change it.
It's a really important point. And I'm not sure that everybody was aware of that. Now you are.
And then there's the word artificial intelligence.
But obviously, AI and technology is changing financial services. Much of it could be for the good.
But clearly where it's not, we need to address that, including looking at our new AI Act, these high-risk areas, which are around evaluating credit scores for life and health insurance.
And these will be subject to the highest regulatory standards.
Because these issues are sensitive, both to society and our future.
And we may need to provide some guidance for the financial sector when it comes to implementation.
And we will work, of course, with our European supervisory authorities.
I'm going to repeat myself by saying my focus is that we use this year to make sure that there's a pathway to building the Capital Markets Union, not 27 fragmented.
And it is a great opportunity.
It's not a weakness. This is something which will be of huge value to Europe in the years ahead.
So we've got to get on with it.
And I think there's a challenge for you in this room as well, to talk to your counterparts, your politicians, your members of parliaments, national and European, to explain your role in all of this and to build a strong Capital Markets Union.
And recently, I said to a group who were asking the Commission to do many things, impact assessments on this very topic.
And, you know, you listen and you say, absolutely.
Why don't we do an impact assessment on the cost of inaction?
Because the figure would be pretty grim if we do that. And the consequences will be absolutely awful.
Thank you.
| Zařazeno | čt 23.05.2024 11:05:00 |
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| Zdroj | Evropská komise en |
| Originál | ec.europa.eu/commission/presscorner/api/documents?reference=SPEECH/24/2786&language=en |
| lang | en |
| guid | /SPEECH/24/2786/ |
