With work to complete the Capital Markets Union (CMU) underway, reforms with regards to the functioning of the European System of Financial Supervisors (ESFS) were welcomed by the European Economic and Social Committee (EESC) during its plenary session in February. By increasing the competencies and improving the governance and funding of the ESFS bodies - the ESRB, EBA, ESMA and EIOPA – the proposed reforms are in line with EESC expectations, though the proposed reforms still fail to provide for an adequate level of protection for end-users of financial services as called for by BETTER FINANCE. That the reform still leaves much to be desired was acknowledged by the EESC through Mr Daniel Mareels, stating that “we must continue to pursue the ultimate objective of a single European capital markets supervisor”, referring to the aim set by the Five Presidents` Report. Mareels continued, highlighting that the importance of a smoothly operating CMU should not be underestimated.
Of great importance to investors and savers, BETTER FINANCE has closely followed the development and progress of the CMU and that of the ESAs reform, launching the CMU Barometer in 2016 and recently issuing comments on the proposed EC reform of the ESAs. The CMU initiative is aimed at, amongst others, strengthening the link between savings and growth, thereby boosting returns for savers and investors. Despite many a challenge still facing the effective and swift completion of the CMU, as a list of BETTER FINANCE concerns clearly illustrates here, the outcome of the EESC`s plenary meeting is encouraging.