Creating a European Capital Markets Union (CMU) is a key project of the European Commission, with the goal to establish a stable and sustainable economic environment. The EAPB has very early identified the CMU as an important initiative with strong potentials and made it a priority of the association. The core objectives of CMU are to more integrate and deepen capital markets in Europe, comprising all Member States. This shall “unlock frozen capital” and hence contribute to the economic growth and job creation”). The Commission is focusing on leveling the access to finance for SMEs. The CMU is quite ambitious, covering not only capital market issues, but extending to banking supervision, long-term-investment, venture capital, insolvency law, taxation and more. A short-term objective is bringing to life the European Fund for Strategic Investments (EFSI), and the EU Long-Term investment fund. Legislation is underway for simple, transparent and standardised securitisation and the prospectus regime will be simplified. But the Commission does also support and enhance best practices, e.g. for Private placement. In addition, expert groups are set up in order to explore ways for further evolution and enhancement. The EAPB decided to take the role of a constructive partner to the EU Institutions, by raising areas where the association and its members can strongly contribute. With respect to securitisation, Asset-Backed Commercial Papers (ABCP) can well be further developed to securitise real-economy receivables. Regarding private placement, Schuldscheindarlehen (bonded loans) offer potential for growth and are promoted by the EAPB.
The EAPB is convinced that
- The primary focus of Capital Markets Union should be to establish a stable, market-stimulating environment ensuring sustainable and fair competition between credit markets and capital markets. Regulatory measures need to be examined as to their appropriateness and possible conflicts with political goals;
- Improved access to capital is essential to address the structural deficits of the European economy;
- A stable business environment and long-term legal certainty are key success factors for a European Capital markets Union;
- The principle of subsidiarity and the best practices from various EU member States need to be observed in developing new legal frameworks for accounting, tax, and insolvency law;
- Public banks consider partnerships between the public sector and private partners as suitable for providing a comprehensive life-cycle concept (“design- build – operate”), going beyond pure financing.