Earlier today, the European Commission released its Green Paper on Capital Markets Union, thereby launching a public consultation on an EU-wide single market for capital.
As one of the first figures to give a public statement regarding the Green Paper, Sven Giegold, MEP for the Greens/European Free Alliance, advises to strengthen European values instead of focusing on short-term shareholder value.
“Commissioner Hill should seize this opportunity to reform the finance market in order to make it compatible with European values. A capital markets union with a one-sided and short-term focus on shareholder value is exactly what the EU doesn't need,” starts Giegold.
“[T]he financial sector needs to focus on long-term investment guided by not just economic but also environmental and social responsibility criteria. […] Small investors could benefit from simpler, EU-standardised retail investment products and these could come with reduced costs and promote competition through easier comparison between different issuers,” he says.
While focusing primarily on the benefits of a well-regulated CMU, Giegold also admits the task is far from easy. “[…] there can be no avoiding the fact that there are formidable obstacles in the areas of taxation, insolvency and accounting law in particular. Commissioner Hill faces enormous challenges,”adds Giegold sympathetically.
Read the full press release here.