As the EU enjoys a period of growth and relative stability, there is finally room to undertake long-needed reforms. But it is vital to act soon, and priorities must be set. There are three pillars of reform for the coming months: completing a robust euro area; building a coherent EU foreign policy; and harnessing the single market’s potential to deliver strong and inclusive growth.
As the Commission launches a review of European financial supervision, the authors argue that Europe needs to move towards a twin peaks model – dividing supervision of prudential and conduct-of-business issues. But this is a long-term vision, and will require institution building. The immediate priorities are to choose a new home for the EBA and reinforce ESMA.
Zsolt Darvas and Dirk Schoenmaker find strong support for the hypothesis that the larger the assets managed by institutional investors, the smaller the home bias and thereby the greater the scope for risk sharing.
Brexit offers EU-27 countries a chance to take some of London’s financial services activity. But there is also a risk of market fragmentation, which could lead to less effective supervision and higher borrowing costs. To get the most out of Brexit, the EU financial sector needs a beefed up ESMA.
The European financial system is too strongly bank-based. How can it be rebalanced to become favourable to growth and employment again? (This paper is only available in French).
At this event Jonathan Hill will discuss the results of the European Commission consultation on the EU regulatory framework for financial services
How can we reduce divergencies in national corporate insolvency regimes in order to create an integrated Capital Markets Union?
Presentation on the Five Presidents’ Report delivered at the Dutch Senate's Standing Committee for European Affairs, Finance and Economic Affairs on 8 December 2015.
After the launch of the Commission's Capital Markets Union action plan on September 30, what changes can be realistically expected in Europe’s debt capital markets over the next five to ten years?
Nicolas Véron comments on the Capital Markets Union Action Plan launched by the European Commission on 30 September 2015.
This Policy Contribution presents facts about EU capital markets, issues that should be taken into account in the development of CMU policy, corresponding policy options over the medium to long term and suggestions for policy implementation and sequencing.
Finance and Financial Regulation