All posts tagged: Capital markets

EU’s big 6 pitch a rival to Wall Street – POLITICO

EU’s big 6 pitch a rival to Wall Street – POLITICO

Published by Sam Flores

Back-to-back crises have limited the power of the public purse, so policymakers are hoping professional financiers and savers can do the heavy lifting by putting their money to work in the right places. EU citizens alone have €11 trillion of cash savings sitting in their bank accounts. But vying interests from within the industry and national governments, such as Ireland and Luxembourg, threaten to derail negotiations. That’s convinced the E6 group to agree on the fundamentals among themselves to speed the process along, triggering fears of a two-speed Europe in which some countries are left behind. “I don’t think a separate structure is feasible, because it would conflict with the prevailing perception in all member states today that fragmentation must stop,” Cyprus’ Finance Minister Makis Keravnos, who currently chairs Ecofin meetings, told POLITICO. Devil in the detail The broad strokes of the deal paper over internal divisions within the E6. While all six governments agree on upgrading the EU’s securities regulator into a supercop for the bloc, they disagree on how fast the process should …

Europeans tried to win over the US this week in DC. Their efforts were lost in translation. – POLITICO

Europeans tried to win over the US this week in DC. Their efforts were lost in translation. – POLITICO

Published by Sam Flores

Growing pains At finance industry gatherings in D.C.’s office buildings and historic hotels, the EU’s efforts to boost growth and stimulate investment by removing fragmentation in European capital markets was seen by industry and regulators alike with either curiosity, because they don’t understand the project, or skepticism because they doubt the EU can get over its internal rivalries and integrate. This week Bessent reiterated the U.S. mantra that “the biggest risk to financial stability is a lack of growth,” accusing the EU of being “unable to follow the Draghi Report … on how it would increase growth.” The existence of the bloc should “facilitate trade among the members, make it more seamless, create more prosperity, and it turns out it has probably been a hindrance,” he said. The Europeans struck a more conciliatory tone. U.K. Finance Minister Rachel Reeves said Britain’s trade deal with the U.S. is “in both of our countries’ interests,” and said technical work with U.S. counterparts on the future of capital markets and financial services is moving forward. “That relationship and …

David and Goliath in Brussels – POLITICO

David and Goliath in Brussels – POLITICO

Published by Sam Flores

To critics, the cumulative effect of regulatory expansion, centralized borrowing and proposals for permanent ‘own resources’ signals a steady rebalancing of power toward the center. The European Union was never intended to become the United States of Europe through incremental fiscal evolution. It was constructed as a union of member states cooperating within defined competences. Taxation is not merely a revenue mechanism. It is the foundation of democratic accountability. National parliaments debate budgets, justify expenditures and face voters. When fiscal authority migrates upward, accountability chains grow longer and more opaque. Supporters of EU-level taxation argue that shared challenges require shared resources. Climate transition, defense coordination, industrial competitiveness and geopolitical resilience demand investment beyond the scale of individual member states. Fragmentation, they warn, would weaken Europe in a world of continental powers. There is merit in acknowledging those pressures. Yet, integration must follow consent, not precede it. The current trajectory risks creating fiscal facts before a political mandate is secured. Joint debt was justified as temporary. ‘Own resources’ were presented as targeted. Yet the logic of …

Europe’s push to go it alone exposes old fault lines – POLITICO

Europe’s push to go it alone exposes old fault lines – POLITICO

Published by Sam Flores

While the meeting is not expected to produce binding commitments, it will set a broad political direction for the European Commission, which is due to draw up proposals ahead of a formal summit in late March. “Everyone around the table must … face a moment of truth,” said Manfred Weber, leader of the European People’s Party, whose members include German Chancellor Friedrich Merz and Commission President Ursula von der Leyen. Leaders should “not complain about each other” but do their “homework” to ensure reforms can be completed, he added. Estonian Foreign Minister Margus Tsahkna told POLITICO ahead of the summit that “Europe has lots of leverage. We just need to stick together and make decisions … instead of whining and complaining, we need to understand that through strength Europe will actually have [a firm] position.” A glaring example is the recent disagreement between EU powerhouses France and Germany, whose leaders clashed over Emmanuel Macron’s refusal to endorse the EU-Mercosur trade deal. In an interview published Tuesday by several European newspapers, the French president trumpeted the need …

EU must implement competitiveness reforms by end-2026, says Berlin – POLITICO

EU must implement competitiveness reforms by end-2026, says Berlin – POLITICO

Published by Sam Flores

The European Union must implement an ambitious package of reforms covering labor mobility, capital markets and simplified bureaucracy by the end of 2026, a discussion paper backed by the governments of Germany, Italy and Belgium said. The one-page document obtained by POLITICO is meant to serve as the basis for discussions between 15 leaders to take place on Thursday before an EU summit later in the day in Alden Biesen, Belgium, where the focus will be on competitiveness. The paper urges the EU to complete the Single Market, slash bureaucratic red tape and chase further trade deals to “open new markets and opportunities for Europe’s economy.” It also spells out a desired timeline for carrying out these reforms. “Our objective is to reach agreement at the March EUCO (European Council gathering) and to anchor this agenda in its conclusions through concrete initiatives, mandates and deadlines, so as to fully implement it by the end of 2026,” the paper reads. Source link