Although the green paper on Capital Markets Union (CMU) was not published yet, early hints as to its content have already appeared. A draft version of the paper reportedly lists the following potential initiatives: driving high-quality securitisation standards, relaxing capital requirements for insurers and banks investing in infrastructure, streamlining the prospectus requirements on companies raising capital and aligning standards for covered bond and corporate debt markets.
When it comes to the supervision of markets, the statements diverge. In January, Olivier Guersent, Deputy Director of DG FISMA (European Commission), said CMU would not include a super-regulator for markets. In line with this, the draft green paper reported on by the Financial Times was supposedly “sidestep(ing) the thorny political issue”.
However, according to a version quoted by Euractiv today, the draft green paper asks: “Do you think that the powers of the European supervisory authorities (the national bodies that oversee the sector) to ensure consistent supervision are sufficient? What additional measures relating to national or EU level supervision would materially contribute to developing a capital markets union?”
The Green Paper – which will start public consultation on Capital Markets Union – is expected later in February 2015.
Recognising the importance of the CMU for the long-term financing of the European economy, BETTER FINANCE is organizing a conference on "A Capital Markets Union for Growth, Jobs and Citizens". Learn more here.