DOCSLIB.ORG

A European Capital Markets Union Is Good for Everyone We Support a Common European Single Market

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
A European Capital Markets Union Is Good for Everyone We Support a Common European Single Market www.deutsche-boerse.com/up-to-date A European Capital Markets Union is good for everyone We support a common European single market The liberal principles of the European Union have Republic of Germany and the Netherlands, has been securing our prosperity and our peace for many more than trebled since 1957. years. It is therefore in the interests of all people in Europe to safeguard and build on the many personal benefits the EU has to offer. Thanks to the common Single Market... 3.6 million new jobs have been created since 1990, of which around 936,000 in Germany. every employee enjoys at least four weeks’ annual leave and a maximum working week of 48 hours. every EU citizen can work where he or she wants since university degrees and apprenticeship diplomas are generally speaking mutually recognised. roads are rehabilitated, fast internet access is provided and new daycare centres are built in all We want to safeguard and build on all these EU member states. advantages. To achieve this – particularly in the rigorous climate and environmental protection light of Brexit – the European Union must remain standards have been enshrined in all 28 member strong and competitive in the future. states. there is greater equality of opportunity, e.g. thanks to the ERASMUS programme. The European Commission is pushing for a Capital you can use one currency to pay in 19 EU Markets Union member states. holidays and the use of mobile phones within The Capital Markets Union is one of the most Europe are less expensive. important initiatives put forward by the European you can travel throughout Europe without having Commission. Its main aim is to stimulate economic to show your passport. growth within the EU and to create jobs on the real per capita GDP of the six founder countries basis of stable and liquid capital markets. But there of the single market, including the Federal are also many other reasons in favour of such a union. It could prove a very effective solution for A European Capital Markets Union is good for everyone 2 many of the challenges we are currently facing in And how does Deutsche Börse Group support Europe. Because of Brexit, there is now an even Europe and the Capital Markets Union? more urgent need to strengthen the capital markets within the EU-27 through attractive, stable and Deutsche Börse Group is committed to an open, pan-European capital markets. united, strong Europe as well as to political and economic integration to create a common market: we draw attention to these advantages, which have provided prosperity, peace and freedom in Europe for many decades – here are a few examples: Platforms for European businesses and investors European platforms for European businesses and investors wishing to invest beyond the local sphere would be of particular interest to young companies that require liquidity to expand their business. Deutsche Börse Venture Network® is such a platform. Since 2015, it has been a forum for founders and investors; around US$ 1.85 billion have been activated by the businesses in the What benefits will a Capital Markets Union bring? Network for innovative ideas to date. Capital markets are important for economic growth. Equity indices which invest in the European idea Functioning capital markets contribute to financing For example, the EURO STOXX 50® tracks 50 the growth of start-ups. More intensive cross-border major listed eurozone companies and is considered movements of capital would bring substantial one of the leading stock market barometers in benefits to the European economy. This is because Europe. By contrast, the STOXX® Europe 50 index capital would be more readily available across includes stocks of 50 European companies in 17 Europe: for example, to maintain and expand the states. infrastructure, to establish sustainable pension provision, for structural measures to reduce Greater simplicity and attractiveness in foreign unemployment and to finance digitalisation. New exchange trading investment opportunities could be tapped. 360T, a company of Deutsche Börse Group, allows you to trade 162 foreign exchange combinations in 24 currencies. 78 of these combinations include What will the Capital Markets Union bring for the one or more currencies of an EU member state. financial market? Foreign exchange trading via 360T enables companies to collateralise goods and services Above all, the Capital Markets Union will provide purchased daily in many different currencies, easier and more secure access to capital for independently of banks. growing businesses and the entire real economy in Europe. For example, it would ensure that savers A central European platform for securities have a greater choice of investment types and that TARGET2-Securities (T2S) is the European platform businesses have better financing options. for the harmonised and central settlement of securities in central bank money – one of the biggest financial infrastructure projects in Europe. T2S stands not only for a fundamental restructuring of Europe’s capital markets, the platform also A European Capital Markets Union is good for everyone 3 provides benefits and savings potential for all Deutsche Börse Group – we make markets work participants in securities trading. And the settlement of securities transactions in Europe is becoming Headquartered in Frankfurt/Main, Deutsche Börse faster and less expensive. Group is one of the largest exchange organisations worldwide. It operates markets that provide integri- European business financing through bonds ty, transparency and security for investors wishing At present, European businesses cover around 75 to invest capital and for issuers wishing to raise percent of their need for debt capital via loans and capital. On these markets, institutional traders buy only around one-quarter via the capital market. The and sell shares, derivatives and other financial Capital Markets Union will allow businesses to instruments in accordance with clear rules and finance themselves via the capital market much under strict supervision. more easily and in different ways. For example, the issue of bonds would also offer new and broader Deutsche Börse Group is now more than just a investment forms to investors. trading venue or exchange – it is a provider of financial market infrastructure. Its products and Brexit services span the entire finance value chain – its In the light of Brexit, the EU-27 needs a business areas range from pre-IPO services and the competitive capital market more urgently than ever admission of securities, through trading, clearing, in order to tackle issues such as digitalisation and settlement and custody of securities and other growth finance. We at Deutsche Börse help to financial instruments to collateral management. It strengthen Europe as a business location. also offers IT services, indices and market data worldwide. Ecosystem for growth We have created an ecosystem for growth to enable, for example, companies that are not yet ready for Published by the stock market to obtain funding. Deutsche Börse AG 60485 Frankfurt/Main Deutsche Börse Group has supported the aims of Germany the Capital Markets Union right from the start. And we will stay on it – for the Europe we share. August 2018 Contact Group Regulatory Strategy E-Mail [email protected] .
Load more

Recommended publications
  • European Stability Mechanism
    ~FACTSHEET~ European Stability Mechanism The Treaty establishing the European Stability Mechanism (ESM) has been ratified by all 17 euro area member states. It entered into force on 27 September 2012, nine months earlier than initially foreseen 1. The treaty was signed by euro area member states on 2 February 2012. The ESM board of governors held its inaugural meeting on 8 October 2012. The ESM is an intergovernmental institution based in Luxembourg, set up to provide financial assistance to eurozone member states experiencing, or being threatened by, severe financing problems, if this is indispensable for safeguarding financial stability in the euro area as a whole. The initial maximum lending capacity of the ESM is set at €500 billion. This is achieved with subscribed capital of €700 billion (€ 80 billion paid-in capital, the rest callable). A first version of the treaty was signed on 11 July 2011, but it was subsequently modified to incorporate decisions taken by the heads of state and government of the euro area on 21 July and 9 December 2011 to improve the effectiveness of the mechanism. As a permanent mechanism, the ESM will take over the tasks currently fulfilled by the European Financial Stability Facility (EFSF) and the European Financial Stabilisation Mechanism (EFSM). With the accelerated entry into force, the ESM will now operate alongside the EFSF for nine months. In March 2012, the Eurogroup agreed to raise the overall ceiling for ESM/EFSF lending to €700 billion 2. Already during the transitional period, until mid-2013, the ESM will be the main instrument for the financing of new programmes.
    [Show full text]
  • 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 ..................................................................................................................................
    [Show full text]
  • 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.
    [Show full text]
  • 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.
    [Show full text]
  • Nowcasting Eurozone Industrial Production
    2003 EDITION Nowcasting Eurozone Industrial Production THEME 1 General EUROPEAN statistics COMMISSION 1 Europe Direct is a service to help you find answers to your questions about the European Union New freephone number: 00 800 6 7 8 9 10 11 A great deal of additional information on the European Union is available on the Internet. It can be accessed through the Europa server (http://europa.eu.int). Luxembourg: Office for Official Publications of the European Communities, 2003 ISBN 92-894-3416-3 ISSN 1725-4825 © European Communities, 2003 Nowcasting Eurozone Industrial Production Dominique Ladiray and Dermot O’Brien Abstract The aim of this paper is to develop a methodology for the estima- tion of nowcasts of the Eurozone Industrial Production Index (IPI) for a delay of less than 45 days. We propose to build well-specified robust models for annual and monthly eurozone IPI growth rates that incor- porate information from business surveys and partial information from Member States. We prioritise models that are stable and well-specified and the optimal models are determined on the basis of an assessment of nowcasting performance for real-time data. 1 TABLE OF CONTENTS 1. Introduction................................................................................................ 3 2. Evolution of Arrival Delays ....................................................................... 3 3. Prospects for an Early IPI .......................................................................... 5 4. Developing a Methodology for Producing IPI Nowcasts .......................... 6 5. Models for Eurozone IPI............................................................................ 7 5.1 Annual IPI Growth Rates .................................................................... 7 5.1.1 Model A: NAIVE Model ........................................................... 7 5.1.2 Model B: GETS with Business Surveys.................................... 8 5.1.3 Model C: GETS with Business Surveys and Partial Information (1) ..............................................................
    [Show full text]
  • The European Union: Questions and Answers
    The European Union: Questions and Answers Updated October 27, 2020 Congressional Research Service https://crsreports.congress.gov RS21372 SUMMARY RS21372 The European Union: Questions and Answers October 27, 2020 The European Union (EU) is a political and economic partnership that represents a unique form of cooperation among sovereign countries. The EU is the latest stage in a process of integration Kristin Archick begun after World War II, initially by six Western European countries, to foster interdependence Specialist in European and make another war in Europe unthinkable. The EU currently consists of 27 member states, Affairs including most of the countries of Central and Eastern Europe, and has helped to promote peace, stability, and economic prosperity throughout the European continent. How the EU Works The EU has been built through a series of binding treaties. Over the years, EU member states have sought to harmonize laws and adopt common policies on an increasing number of economic, social, and political issues. EU member states share a customs union; a single market in which capital, goods, services, and people move freely; a common trade policy; and a common agricultural policy. Nineteen EU member states use a common currency (the euro), and 22 member states participate in the Schengen area of free movement in which internal border controls have been eliminated. In addition, the EU has been developing a Common Foreign and Security Policy (CFSP), which includes a Common Security and Defense Policy (CSDP), and pursuing cooperation in the area of Justice and Home Affairs (JHA) to forge common internal security measures. Member states work together through several EU institutions to set policy and to promote their collective interests.
    [Show full text]
  • 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 ..............................................................................
    [Show full text]
  • Reports to Conference Spring 2015 Contents
    REPORTS TO CONFERENCE SPRING 2015 CONTENTS Contents Page Federal Conference Committee……….……………………….……………..4 Federal Policy Committee......................…………...……………………......9 Federal Executive.............………………... ………………………………...17 Federal Finance and Administration Committee………….….…..............25 Parliamentary Party (Commons)……………………………. ……………...29 …………. Parliamentary Party (Lords)………………………..………………………...35 Parliamentary Party (Europe)………………………….……………………..41 Campaign for Gender Balance……………………………………………...45 Diversity Engagement Group……………………………………………..…50 3 Federal Conference Committee Glasgow 2015 Last autumn we went back to Glasgow for the second year running. As in 2013 we received a superb welcome from the city. We continue to ask all attendees to complete an online feedback questionnaire. A good percentage complete this but I would urge all members to take the time to participate. It is incredibly useful to the conference office and FCC and does influence whether we visit a venue again and if we do, what changes we need to try and make. FCC Changes Following the committee elections at the end of last year there were a number of changes to the membership of FCC. Qassim Afzal, Louise Bloom, Sal Brinton, Prateek Buch, Veronica German, Evan Harris and David Rendel either did not restand or were not re-elected. All played a valuable role on FCC and will be missed. We welcome Jon Ball, Zoe O’Connell and Mary Reid onto the committee as directly elected members. FPC have elected two new representatives onto FCC and we welcome back Linda Jack and Jeremy Hargreaves in these roles. Both have previously served on FCC so are familiar with the way we work. One of the FE reps is also new with Kaavya Kaushik joining James Gurling as an FE rep on FCC.
    [Show full text]
  • EU Financial Services Regulation
    EU Financial Services regulation A new agenda demands a new approach October 2019 kpmg.com/regulatorychallenges 2 EU Financial Services regulation © 2019 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. EU Financial Services regulation 3 Contents 01 Introduction 4 02 Changing faces 6 03 Resetting the agenda 8 04 Legislating for the future 12 05 Managing the inheritance 14 06 Converging supervisory practices 16 07 Acting on the global stage 18 08 Abbreviations 22 09 Further insights 23 © 2019 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 4 EU Financial Services regulation 01 Introduction Against a challenging economic and geo- A challenging context political backdrop, the incoming Commission There is a majority of new faces involved in the President has set a full regulatory agenda that regulation and supervision of financial services, across will directly and indirectly impact the financial the leadership of the EU institutions and within the services industry.
    [Show full text]
  • As a Permanent Institution, the ESM “ Makes the Monetary Union More Robust, and Enhances the Resilience “Of Its Economy
    6 | EUROPEAN STABILITY MECHANISM As a permanent institution, the ESM “ makes the monetary union more robust, and enhances the resilience “of its economy. KLAUS REGLING Managing Director European Stability Mechanism 2017 ANNUAL REPORT | 7 Message from the Managing Director The European Stability Mechanism was set up to protect the euro area against the worst blows dealt by an economic crisis. Such crises happen from time to time, and have done so for hundreds of years. They can spring up suddenly, seemingly out of nowhere, for reasons that may be poorly understood at first. The problems that cause a crisis often build up for a long time – but we do not always heed the warning signals. It was like that in the last financial crisis, a period from which the ESM was born. Several countries accumulated unsustainable misalignments during the first decade of monetary union, in the form of high debt levels, a loss of competitiveness, and growing current account deficits. In addition, the euro area was not well-equipped institutionally to deal with a serious crisis, and the monetary union threatened to break up. The rapid establishment of the ESM – and first the temporary European Financial Stability Facility (EFSF) – could not turn the clock back on the crisis. But these two institutions shielded Europe against a far worse outcome: the departure of one or more countries from the euro area. The ESM is now a permanent feature of the monetary union and of the global finan- cial safety net. It functions as an emergency system, which has helped to keep the euro together.
    [Show full text]
  • Decision in Strategic Inquiry OI/1/2019/MIG Concerning the Transparency of the Bodies Involved in Preparing Eurogroup Meetings
    European Ombudsman Decision in strategic inquiry OI/1/2019/MIG concerning the transparency of the bodies involved in preparing Eurogroup meetings Decision Case OI/1/2019/MIG - Opened on 13/05/2019 - Decision on 03/12/2019 - Institutions concerned Council of the European Union | European Commission ( No further inquiries justified ) | This strategic inquiry concerned the transparency of the three preparatory bodies that are involved in preparing Eurogroup meetings. The focus of the inquiry was on requests for public access to documents concerning the work of the Eurogroup and these preparatory bodies, which the Council of the European Union and the European Commission have received since the Eurogroup took proactive transparency measures in 2016. The Ombudsman found that both the Council and the Commission had dealt properly with the relevant public access requests. She further noted that, in the meantime, the Eurogroup had taken steps to improve its transparency policy. This includes the plan to create an online repository of publicly available Eurogroup documents and to provide more information about citizens’ right to request documents held by the Council. Further steps have been taken to enhance the transparency of the EWG. In view of these improvements, the Ombudsman now closes this strategic inquiry. Background to the complaint 1. The Eurogroup is an informal body in which the Finance Ministers of EU Member States that are part of the euro area (the ‘Eurozone’) meet to discuss matters relating to Eurozone economic policy. This includes matters such as post-programme surveillance of Eurozone countries that have received financial assistance or Member States’ draft budgetary plans.
    [Show full text]
  • Is a Multi-Speed Europe Really the Answer to the EU’S Problems? Published on 09
    Careful What You Choose For: Is a Multi-Speed Europe Really the Answer to the EU’s Problems? Published on 09. March 2017 by Dr Eleni Panagiotarea It appears that the EU’s solution to its current directionless and delegitimised state is a multi-speed Europe. It is ironic that the 27-nation bloc prepares to mark 60 years since its founding treaty by accepting that an ‘ever closer union’ is officially no longer on the table. Some will argue that the big four which have been backing this idea, France, Germany, Italy and Spain, are trying to cut their losses short rather than admit failure, which makes embracing divergence, whitewashing growing inequalities within and between states and appeasing populists the optimal strategy. A multi- speed Europe is, in any case, already a reality on the ground, as both the Schengen border-free zone and the eurozone attest. The next logical step for the capable and the willing is to pool resources, generate economies of scale and create structures for a new round of common projects. Yet, there are a number of problems with regard to this proposition. First, the kind of flexibility implied in multiple speeds, has been in short supply throughout the existence of the European project. Creating pockets of deeper cooperation and enabling a well-regulated flow of ‘ins’ and ‘outs’, on the basis of clusters of interests, simply surpasses the EU’s current technical and institutional capacity. Building it up will take time – time, however, is in equally short supply, considering the pervasive sense of insecurity that Europeans feel and how this is affecting their voting patterns.
    [Show full text]