DOCSLIB.ORG

Completing Capital Markets Union

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text

Load more

COMPLETING CAPITAL MARKETS UNION Enabling EU-27 markets to play a bigger role in the financing of the Union’s economy LOGO + ACRONYME CEPS-ECMI provided the background analysis of the report, and do not necessarily endorse or subscribe to the recommendations put forward by AMAFI. PAGE 3 LOGO + ACRONYME Association française des marchés financiers (AMAFI) AMAFI is the trade organisation working at national, European and international levels to represent financial market partici- pants in France. AMAFI members consist of investment firms and credit institutions (French, European and global firms), PAGE 3 operating in and/or from France (corporate and invest- ment banks (CIBs), brokers-dealers, exchanges, and private banks). As far as financial products are concerned, we mostly represent all issuers/manufacturers of products (CIBs) and, through our private bank members, distributors as well. AMAFI has more than 150 members operating in equities and fixed-income and interest rate products, as well as commodities, derivatives and structured products for both professional and retail clients. Centre for European Policy Studies CEPS is one of Europe’s leading think tanks and forums for debate on EU affairs, with an exceptionally strong in-house research capacity and an extensive network of partner ins- titutes throughout the world. As an organisation, CEPS is committed to carrying out state-of-the-art policy research that addresses the challenges facing Europe and maintaining high standards of academic excellence and unqualified inde- pendence and impartiality. It provides a forum for discussion among all stakeholders in the European policy process and works to build collaborative networks of researchers, poli- cy-makers and business representatives across Europe. European Capital Markets Institute ECMI conducts in-depth research aimed at informing the debate and policy-making process on a broad range of issues related to capital markets. Through its various activities, ECMI facilitates interaction among market participants, policy- makers and academics. These exchanges are fuelled by the various outputs ECMI produces, such as regular commen- taries, policy briefs, working papers, statistics, task forces, conferences, workshops and seminars. In addition, ECMI undertakes studies commissioned by the EU institutions and other organisations, and publishes contributions from high-profile external researchers. 2 AMAFI / 20-40 TABLE OF CONTENTS PART A An ambitious path of reforms to successfully accelerate the market-based financing of the Union’s economy 7 Introduction 8 A.1 The structure of EU financial markets 11 Bank based vs market based financial system 11 Equity and debt securities markets 12 Stock markets 12 Bond markets 12 OTC derivatives market 12 The securitisation market 12 The asset management sector 13 Private equity and venture capital 13 Households 13 Non-financial corporations 13 Insurance companies and pension funds 14 In a nutshell 14 A.2 Key challenges for EU-27 financial markets 15 2.1 The four main financing challenges 15 2.1.1 The Union’s economic recovery 15 2.1.2 The mitigation of climate change 16 2.1.3 Fostering the development of EU champions especially in the digital and energy transition spheres 16 Enabling the Union’s economic sovereignty 16 Adapting to the digital revolution 17 Ensuring the Union’s autonomy for energy transition 18 2.1.4 The ageing of the population 18 AMAFI / 20-40 3 2.2 Brexit: the importance of the UK in the functionning of EU financial markets 19 2.2.1 The emergence of London as a global financial centre 19 2.2.2 Trading 19 The primary equity markets 19 The secondary equity markets 19 The primary bond markets 20 The secondary bond markets 20 Foreign exchange 20 Derivative markets 20 2.2.3 Clearing and settlement 21 Clearing 21 Settlement 21 A.3 Reforming EU-27 financial markets 22 PRIORITY 1 Revamping the securitisation market 22 PRIORITY 2 Developing the flexibility of the prudential regulatory framework 23 PRIORITY 3 Managing Brexit and potential hard-Brexit implications 23 PRIORITY 4 Creating an EU safe asset 26 PRIORITY 5 Strengthening supervisory convergence 26 PRIORITY 6 Developing an ecosystem of pension funds 27 PRIORITY 7 Facilitating companies’ access to investors 27 PRIORITY 8 Encouraging debt-equity swap transactions 29 PRIORITY 9 Creating the regulatory conditions for the emergence of European champions in the digital and energy transition fields 29 Proposed reforms with a more medium to long term perspective 31 Consolidation of EU post trade infrastructures 31 Harmonizing procedures for repayment of withholding taxes to investors 31 Enabling EU-27 investment banks to play a central role in the financing of EU economy to compete at EU and international levels 32 Simplifying the EU regulatory framework for financial markets 32 The importance of financial literacy for EU citizens 33 A targeted public support from EU institutions 33 Connecting EU trading venues for SMEs 33 Enhancing insolvency regimes 33 Corporate actions 33 Conclusion 34 4 PART B An analysis based on economic data illustrating the challenges faced by EU-27 markets 35 B.1 The unified legal, regulatory and fiscal framework of the US 36 B.2 The consolidation of the US banking system 38 B.3 The depth of the US securities market 40 B.4 The consistency of the US pension funds ecosystem 41 B.5 Bank-based versus market-based financial system 44 B.6 Debt and securities markets 46 B.7 Stock markets 47 B.8 Divided and diverse bond markets 50 B.9 London as the epicentre of the OTC derivative market 52 B.10 The difficult recovery of the EU securitisation market 54 B.11 Asset management: a growing sector since 2008 56 B.12 Private equity and venture capital 60 B.13 Households’ risk-averse behaviours 63 B.14 Non-financial corporations 65 B.15 Insurance companies and pension funds 67 B.16 The mitigation of climate change 71 B.17 The adaptation to the digital revolution 73 B.18 The ageing of the population 75 B.19 The emergence of London as a global financial centre 77 B.20 Primary and secondary equity markets 81 B.21 Primary and secondary bond markets 86 B.22 Foreign exchange 91 B.23 Derivative markets 93 B.24 Clearing and settlement 96 B.25 Market fragmentation and the role of UK CCPs 101 B.26 The liquidity of EU-27 financial markets 105 Table of figures 108 Table of tables 110 References 111 PP 34 These clickable icons throughout Part A lead to further information in Part B. 5 GLOSSARY OF ACRONYMS PART A CCP Central clearing counterparty HLF High-Level Forum CEE Central and Eastern European IPO Initial public offering CEPS Centre for European Policy Studies ICPF Insurance company and pension fund CIB Corporate & Investment Banking IRD Interest rates derivatives CMU Capital Markets Union LSE London Stock Exchange CRR Capital Requirements Regulation MAR Market Abuse Regulation CSD Central Securities Depository MiFID Markets in Financial Instruments Directive CSDR Central Securities Depositories MiFIR Markets in Financial Instruments Regulation Regulation MTF Multilateral trading facility CVA Credit valuation adjustment NCA National competent authority D2C Dealer to customer NFC Non-financial corporation DTO Derivative trading obligation NSFR Net stable funding ratio EC European Commission OTC Over the counter ECB European Central Bank OTF Organised trading facility ECMI European Capital Markets Institute PE Private equity EDDI European Distribution of Debt Instruments PEPP Pandemic Emergency Purchase Programme EIB European Investment Bank PRIIPs Packaged Retail Investment and EMIR European Market Infrastructure Regulation Insurance Products ESG Environmental, social & governance QE Quantitative easing ESMA European Securities and Markets Authority SA-CCR Standardized approach for counterparty EU European Union credit risk Eu VECA European venture capital funds SME Small and medium enterprise FRTB Fundamental review of the trading book STO Share trading obligation FX Foreign exchange UK United Kingdom GDP Gross domestic product US United States GFC Global financial crisis USD US dollar GSE Government-sponsored enterprise VC Venture capital 6 PART A An ambitious path of reforms to successfully accelerate the market-based financing of the Union’s economy 7 Introduction The Capital Markets Union initiative With this in mind, initiatives to revamp the CMU was fully justified in the context born project were initiated in the second half of 2019 of the Global Financial Crisis shortly after a new European Parliament was elected and not long before the new European Commission In the wake of the Global Financial Crisis (GFC), the was officially due to take office. While the European issue of the stability of the financial system in gene- Parliament’s own-initiative report is still underway as ral, and the banking system in particular, has become these lines are being written, two main workstreams central. Various regulations, particularly in the pru- deserve being mentioned: one at Member States’ dential field, have thus been adopted, one of the very level, the Next CMU High-Level Group chaired by Fa- direct effects of which is the considerable increase brice Demarigny whose report published in October in the constraints weighing on banks and on their 2019(2) very much inspired the Council’s conclusions ability to distribute credit. This has resulted in the on the deepening of the CMU adopted in December need to change the financing model of the European 2019(3), and the other at the European Commission economy, which has hitherto been credit-based, to (EC) level with the High-Level Forum chaired by ensure that it could increasingly rely on financial Thomas Wieser whose final report has been recently markets. issued(4). The Capital Markets Union (CMU) Action Plan Building on the contributions it has been making unveiled in September 2015(1) aimed to achieve this for many years to the process of developing an transition.
Recommended publications
  • Economic Governance Reform and Financial Stabilization in the EU and in the Eurosystem – Treaty-Based and Intergovernmental Decisions

    Economic Governance Reform and Financial Stabilization in the EU and in the Eurosystem – Treaty-Based and Intergovernmental Decisions

    Economic Governance Reform and Financial Stabilization in the EU and in the Eurosystem – Treaty-Based and Intergovernmental Decisions Sylvia Gloggnitzer, The institutional framework and the tools for economic governance provided by the Treaty of Isabella Lindner1 Lisbon were inadequate for preventing or resolving the recent banking and sovereign debt crisis in the EU. For instance, the Treaty did not provide any instruments for stabilizing euro area finances, and the existing economic governance instruments, such as the Stability and Growth Pact or the Broad Economic Policy Guidelines, were not applied adequately by the Member States. In addition, the institutional decision-making procedures foreseen by the Treaty proved too sluggish during the crisis. Therefore, most of the measures taken to remedy the situation were agreed through intergovernmental decision-making, with the European Council evolving as the key player in the governance process, rather than through standard EU procedures (with the “Community Method”). The deepening of euro governance, alongside the EU governance framework, resulted from the fact that the euro area required a coherent and efficient economic governance structure. The willingness to offer financial solidarity within the euro area correlates with the willingness of distressed Member States to implement sustainable national fiscal policies. To ensure the long-term success of the euro, the euro area will, however, have to adopt a common overall strategy that adds more value to its economic success as an entity.
  • How Firms Borrow in International Bond Markets

    How Firms Borrow in International Bond Markets

    HOW FIRMS BORROW IN 2016 INTERNATIONAL BOND MARKETS: SECURITIES REGULATION AND MARKET SEGMENTATION Alberto Fuertes and José María Serena Documentos de Trabajo N.º 1603 HOW FIRMS BORROW IN INTERNATIONAL BOND MARKETS: SECURITIES REGULATION AND MARKET SEGMENTATION HOW FIRMS BORROW IN INTERNATIONAL BOND MARKETS: SECURITIES REGULATION AND MARKET SEGMENTATION Alberto Fuertes and José María Serena (*) BANCO DE ESPAÑA (*) The authors acknowledge Mirko Abbritti, Peter Backe, Carmen Broto, Branimir Gruic, Ángel Estrada, Ingo Fender, Ignacio Hernando, Pilar L’Hotellerie-Fallois, Philip Lane, José Manuel Marqués, Luis Molina, Pedro del Río, Carlos Serrano, Liliana Rojas-Suárez, Sergio Schmuckler and Vlad Sushko, and participants at the VIII Emerging Economics Workshop, Banco de España Research Seminar, Oxford University-IFABS Conference on Corporate Finance, and IDB- Financial Stability and Development (FSD) Group Seminar for helpful comments and suggestions; and Ana Arencibia for research assistance. The authors’ views need not coincide with those of the Banco de España or the Eurosystem. Corresponding authors: [email protected], [email protected]. Documentos de Trabajo. N.º 1603 2016 The Working Paper Series seeks to disseminate original research in economics and fi nance. All papers have been anonymously refereed. By publishing these papers, the Banco de España aims to contribute to economic analysis and, in particular, to knowledge of the Spanish economy and its international environment. The opinions and analyses in the Working Paper Series are the responsibility of the authors and, therefore, do not necessarily coincide with those of the Banco de España or the Eurosystem. The Banco de España disseminates its main reports and most of its publications via the Internet at the following website: http://www.bde.es.
  • What Was He Doing at the Eurogroup?

    What Was He Doing at the Eurogroup?

    Published on Eurointelligence, 10 July 2007. The original version of the article appeared in French in Le Monde. What was he doing at the Eurogroup? Jean Pisani-Ferry By attending the meeting of ministers of the euro area on Monday 9 July Nicolas Sarkozy was above all making a political statement. This was a 'first', after a decade in which heads of state and government of the euro area have been conspicuous by their absence. They have never met in a euro context, not even at the birth of their common currency. Having taken a momentous decision, they promptly left implementation of the euro to financial technicians. By going to the Eurogroup, Nicolas Sarkozy clearly intended to mark the end of this long absence. Beyond the symbolism, however, Europe was curious as to his motives and many are worried. Criticised for a fiscal policy which has departed from the agreed objective, was the President of France seeking the consent of partner countries to this departure? Was he launching an offensive designed to dilute the independence of the European Central Bank? And what is this 'economic government' which all the French leaders are calling for but none has pinned down exactly? Few Frenchmen realise the extent to which the ideas they share may appear odd to their partners. The reason for this is that the euro means different things to different peoples. For some, for example the Netherlands and Austria, it allowed a belated ceding of a sovereignty perceived as existing in name only. They see monetary union as a necessary framework for national economic policy – a little like the gold standard underpinned disciplines in the 19th century without implying political affiliation.
  • Bankwatch Mail March 2013 CEE Bankwatch Network's Newsletter on International Development Finance

    Bankwatch Mail March 2013 CEE Bankwatch Network's Newsletter on International Development Finance

    ISSUE 55 BANKWATCH MAIL March 2013 CEE Bankwatch Network's newsletter on international development finance www.bankwatch.org New nuclear risks in Ukraine – EBRD EIB hit by activist urged not to back lifetime extensions hoax, pledges to continue hitting under the guise of ‘safety’ climate The European Bank for Reconstruction to safety measures, including the decom- The European Investment Bank’s and Development is expected to take missioning of old reactors, not prolonging annual press conference in the final a decision this month on whether their lifetime.” week of February proved to be or not to provide a EUR 300 million Chief among the concerns of campaign- significantly more revealing about loan for a nuclear power plant ers is that the SUP has not been designed the bank’s commitment to fueling to guarantee the safe operation of Ukrain- Safety Upgrade Programme (SUP) climate change than is the norm for ian nuclear units after the expiration of the in Ukraine. Bankwatch and other original design life. the EU bank. environment groups are questioning As Holovko explains, the option – clearly the logic of the proposed SUP as it a very realistic option under Energoatom Reacting to a fake press release – circulated by plans – of plant operations exceeding the will result in some of Ukraine’s old activists on the eve of the bank’s set piece event design period has not been assessed: “In nuclear units continuing to operate in Brussels – which had announced that the EIB the main ecological assessment report would be pulling out of coal investments with for another 20 years.
  • The Bank of the European Union (Sabine Tissot) the Authors Do Not Accept Responsibility for the 1958-2008 • 1958-2008 • 1958-2008 Translations

    The Bank of the European Union (Sabine Tissot) the Authors Do Not Accept Responsibility for the 1958-2008 • 1958-2008 • 1958-2008 Translations

    The book is published and printed in Luxembourg by 1958-2008 • 1958-2008 • 1958-2008 1958-2008 • 1958-2008 • 1958-2008 15, rue du Commerce – L-1351 Luxembourg 3 (+352) 48 00 22 -1 5 (+352) 49 59 63 1958-2008 • 1958-2008 • 1958-2008 U [email protected] – www.ic.lu The history of the European Investment Bank cannot would thus mobilise capital to promote the cohesion be dissociated from that of the European project of the European area and modernise the economy. 1958-2008 • 1958-2008 • 1958-2008 The EIB yesterday and today itself or from the stages in its implementation. First These initial objectives have not been abandoned. (cover photographs) broached during the inter-war period, the idea of an 1958-2008 • 1958-2008 • 1958-2008 The Bank’s history symbolised by its institution for the financing of major infrastructure in However, today’s EIB is very different from that which 1958-2008 • 1958-2008 • 1958-2008 successive headquarters’ buildings: Europe resurfaced in 1949 at the time of reconstruction started operating in 1958. The Europe of Six has Mont des Arts in Brussels, and the Marshall Plan, when Maurice Petsche proposed become that of Twenty-Seven; the individual national 1958-2008 • 1958-2008 • 1958-2008 Place de Metz and Boulevard Konrad Adenauer the creation of a European investment bank to the economies have given way to the ‘single market’; there (West and East Buildings) in Luxembourg. Organisation for European Economic Cooperation. has been continuous technological progress, whether 1958-2008 • 1958-2008 • 1958-2008 in industry or financial services; and the concerns of The creation of the Bank was finalised during the European citizens have changed.
  • Should Poland Join the Euro? an Economic and Political Analysis

    Should Poland Join the Euro? an Economic and Political Analysis

    Should Poland Join the Euro? An Economic and Political Analysis Should Poland Join the Euro? An Economic and Political Analysis Graduate Policy Workshop February 2016 Michael Carlson Conor Carroll Iris Chan Geoff Cooper Vanessa Lehner Kelsey Montgomery Duc Tran Table of Contents Acknowledgements ................................................................................................................................ i About the WWS Graduate Policy Workshop ........................................................................................ ii Executive Summary .............................................................................................................................. 1 1 Introduction ................................................................................................................................. 2 2 The Evolution of Polish Thought on Euro Adoption ................................................................. 5 2.1 Pre-EU membership reforms ...................................................................................................................... 5 2.2 After EU Accession ....................................................................................................................................... 5 2.3 Crisis years ...................................................................................................................................................... 6 2.4 Post-crisis assessment ..................................................................................................................................
  • State Transformation and the European Integration Project Lessons from the Financial Crisis and the Greek Paradigm Evangelos Venizelos No

    State Transformation and the European Integration Project Lessons from the Financial Crisis and the Greek Paradigm Evangelos Venizelos No

    State Transformation and the European Integration Project Lessons from the financial crisis and the Greek paradigm Evangelos Venizelos No. 130/February 2016 Abstract The financial crisis that erupted in the eurozone not only affected the EU’s financial governance mechanisms, but also the very nature of state sovereignty and balances in the relations of member states; thus, the actual inequalities between the member states hidden behind their institutional equality have deteriorated. This transformation is recorded in the case law of the Court of Justice of the European Union and the member states’ constitutional courts, particularly in those at the heart of the crisis, with Greece as the most prominent example. It is the issue of public debt (sovereign debt) of the EU member states that particularly reflects the influence of the crisis on state sovereignty as well as the intensely transnational (intergovernmental) character of European integration, which under these circumstances takes the form of a continuous, tough negotiation. The historical connection between public debt (sovereign debt) and state sovereignty has re-emerged because of the financial crisis. This development has affected not only the European institutions, but also, at the member state level, the actual institutional content of the rule of law (especially judicial review) and the welfare state in its essence, as the great social and political acquis of 20th century Europe. From this perspective, the way that the Greek courts have dealt with the gradual waves of fiscal austerity measures and structural reforms from 2010 to 2015 is characteristic. The effect of the financial crisis on the sovereignty of the member states and on the pace of European integration also has an impact on European foreign and security policy, and the correlations between the political forces at both the national and European level, thus producing even more intense pressures on European social democracy.
  • The European Union and the United Kingdom

    The European Union and the United Kingdom

    ISSUE 2016/ 01 policy brief JANUARY 2016 bruegel ONE MARKET, TWO MONIES: THE EUROPEAN UNION AND THE UNITED KINGDOM by André Sapir THE ISSUE Access to the single market is one of the core benefits of the United Senior Fellow at Bruegel Kingdom’s membership of the European Union. A vote to leave the EU would [email protected] trigger difficult negotiations on continued access to that market. However, the and Guntram B. Wolff single market is not static. One of the drivers of change is the necessary Director of Bruegel [email protected] reforms to strengthen the euro. Such reforms would not only affect the euro’s fiscal and political governance. They would also have an impact on the single market, in particular in the areas of banking, capital markets and labour mar - kets. This is bound to affect the UK, whether it remains in the EU or not. POLICY CHALLENGE A defining characteristic of the banking, capital and labour markets is a high degree of public intervention. These markets are all regulated, and have implicit or explicit fiscal arrangements associated with them. Deepening integration in these markets will likely therefore require governance inte - gration, which might involve only the subset of EU countries that use the euro. Since these countries constitute the EU majority, safeguards are Participation of euro and non-euro EU countries in inter - needed to protect the governmental arrangements to strengthen EMU legitimate single mar - ket interests of the UK European Union and other euro-outs. Fiscal Compact, 2012 But the legitimate SE interest of the euro- Euro-area 19 Euro-plus area majority in deeper AT, BE, CY, DE, EE, ES UK Pact, 2011 HU market integration to IE, FI, FR, GR, IT, LT, LU, LV BG, DK, PL, RO MT, NL, PT, SI, SK bolster the euro should also be protected Banking Union (SRM), 2014 against vetoes from CZ, HR the euro-out minority.
  • Is Europe's Capital Markets Union Now in Sight?

    Is Europe's Capital Markets Union Now in Sight?

    Conference Report| November 2020 IS EUROPE’S CAPITAL MARKETS UNION NOW IN SIGHT? Apostolos Thomadakis, Karel Lannoo and Cosmina Amariei The Covid-19 pandemic has served as a brutal reminder of the urgency to strengthen societal resilience as a whole. The extent of the socio-economic fallout has yet to be fully understood, however. But the Capital Markets Union (CMU) project has now taken on new relevance. Mobilising private funding for recovery coupled with sustainable and digital finance strategies is sorely needed. To this end, the ECMI annual conference brought together policymakers, supervisors, academics and industry representatives to exchange views on the continuation of the CMU, namely how to deliver the best outcomes for companies, investors and citizens in the coming years. It also featured a special debate on the evolving role of credit rating agencies. Disclaimer. This report includes the main conclusions from the 10th ECMI Annual Conference that was held virtually on 5 and 6 November 2020. Its content should be attributed solely to the rapporteurs. A detailed overview of the proceedings is available here. European Capital Markets Institute, Place du Congrès 1, 1000 Brussels, Belgium www.ecmi.eu, [email protected] © Copyright 2020, ECMI All rights reserved. 2 | ANNUAL CONFERENCE Mobilising funding for sustainable recovery In Europe, capital markets are at differing stages of development, and are far from integrated. A fresh agenda for the financial sector that is both anchored in the needs of the real economy and shows regulatory quality is required now, for instance in the form of an ambitious second phase of the CMU project.
  • AGENDA – Capital Markets Seminar DAY 1 | 1St July 2020

    AGENDA – Capital Markets Seminar DAY 1 | 1St July 2020

    AGENDA – Capital Markets Seminar DAY 1 | 1st July 2020 Webinar for Central Banks and Official Sector Organisations CET Welcome address 9:30 – 9:40 . Werner Hoyer, President, European Investment Bank . Klaus Regling, Managing Director, European Stability Mechanism Keynote speech: The price of uncertainty and uncertainty about prices: monetary policy in the post 9:40 – 10:00 COVID-19 economy . Fabio Panetta, Member of the Executive Board, European Central Bank 10:00 – 10:10 Keynote remarks . Valdis Dombrovskis, Executive Vice-President, European Commission 10:10 – 11:10 Panel discussion: European institutional response to Covid-19 . Bertrand de Mazières, Director General Finance, European Investment Bank . Kalin Anev Janse, CFO, European Stability Mechanism . Björn Ordell, CFO, Head of Treasury and Finance, and Member of Executive Committee, Nordic Investment Bank . Maarten Verwey, Director General DG Economic and Financial Affairs, European Commission Moderator: Agnès Belaisch, Chief European Strategist, Barings Investment Institute Fire-side chat: Sustainable Finance: the role of public and private investment to ensure a green and 11:10 - 11:40 socially just recovery . Emma Navarro, Vice-President, European Investment Bank . Jean Jacques Barberis, Member of Executive Committee and Head of Institutional and Corporate Clients Coverage, Amundi. Vice Chairman of the Board Finance for Tomorrow Moderator: Rodrigo Tavares, Founder and President, Granito Group 11:40 – 12:10 Fire-side chat: Energy Transition: are economic recovery and sustainable energy mutually exclusive? . Laura Cozzi, Chief Energy Modeller, International Energy Agency . Andrew McDowell, Vice-President, European Investment Bank Moderator: Eugene Howard, Head of Division Electricity Networks, European Investment Bank Keynote speech 12:10 – 12:20 . Frank Elderson, Chairman of NGFS and Executive Director of Supervision, De Nederlandsche Bank 12:20 – 13:20 Panel discussion: Role of Central Banks and public sector in their response to sustainable recovery .
  • Problems of the Adoption of the Euro in Lithuania

    Problems of the Adoption of the Euro in Lithuania

    ISSN 1822-8011 (print) VE IVS ISSN 1822-8038 (online) RI TI INTELEKTINË EKONOMIKA TAS TIA INTELLECTUAL ECONOMICS 2009, No. 2(6), p. 108–115 INSTITUCINĖS APŽVALGOS INSTITUTIONAL REVIEWS PROBLEMS OF THE ADOPTION OF THE EURO IN LITHUANIA Gediminas DAVULIS Mykolas Romeris University Ateities str. 20, LT-08303 Vilnius, Lithuania Email: [email protected] Abstract. The paper analyzes the possible consequences for Lithuania and other Eastern European countries af- ter joining the European Monetary Union and adopting the single currency, i.e. the euro. The international importance of the euro, the advantages and disadvantages of the single currency are discussed. The experience of Slovenia and Germany is analyzed. The investigation has shown that the adoption of the euro did not have a considerable influence on the price level in Germany. Actually, the adoption of the euro caused a rise in some prices to a certain degree but this influence was insignificant. Due to the proper means applied, Slovenia also avoided a sharp jump in prices after the national currency was replaced by the euro. However, due to psychological factors the concerns about the increase in the prices after the adoption of the euro may become exaggerated. The strategy of the adoption of the euro in Lithu- ania is discussed with regard to the experience of other countries. JEL Classification: G280, 0310. Keywords: euro, European Union, inflation. Reikšminiai žodžiai: euras, Europos Sąjunga, infliacija. Introduction experience of the countries that successfully joined the EMU. Since the experience of the functioning of The adoption of the euro and joining the Euro- the EMU in Europe is not so rich, more discussions pean Monetary Union (EMU) still remains one of the on this point are expected in the future.
  • An Agenda for Capital Markets Union November 2014

    An Agenda for Capital Markets Union November 2014

    An agenda for capital markets union November 2014 Association for Financial Markets in Europe www.afme.eu About AFME The Association for Financial Markets in Europe (AFME) is the voice of Europe’s wholesale financial markets. We represent the leading global and European banks and other significant capital market players. We believe that liquid capital markets and a well-functioning banking system are central to any successful modern economy. We advocate stable, competitive, sustainable European financial markets Focusthat support economic growth and benefit society. Expertiseon a wide range of market, business and prudential issues Strongdeep policy and technicalrelationships skills Breadthwith European and global policymakers Pan-Europeanbroad global and European membership organisation and perspective Global reach via the Global Financial Markets Association (GFMA) Capital Markets Union An agenda for capital markets union Contents FOREWORD ........................................................................................................................................ 2 1. EXECUTIVE SUMMARY ............................................................................................................ 3 2. GOALS FOR A CAPITAL MARKETS UNION ........................................................................ 5 Defining the capital markets union ...................................................................................................................... 5 The international dimension to capital markets union ..............................................................................