{"id":355678,"date":"2024-04-23T11:38:26","date_gmt":"2024-04-23T09:38:26","guid":{"rendered":"https:\/\/www.eunews.it\/2024\/04\/23\/unione-dei-mercati-dei-capitali-lavoro-ue\/"},"modified":"2024-04-26T15:13:19","modified_gmt":"2024-04-26T13:13:19","slug":"eu-commission-embraces-the-letta-draghi-line-and-revives-the-capital-markets-union","status":"publish","type":"post","link":"https:\/\/staging.eunews.it\/en\/2024\/04\/23\/eu-commission-embraces-the-letta-draghi-line-and-revives-the-capital-markets-union\/","title":{"rendered":"EU Commission embraces the Letta-Draghi line and revives the Capital Markets Union"},"content":{"rendered":"

Brussels – The European Commission’s work to revitalize the Capital Markets Union begins, following the guidelines presented – or still being finalized – by\u00a0 Enrico Letta<\/strong> and Mario Draghi,\u00a0<\/strong>the two former Italian prime ministers tasked <\/a>with\u00a0charting the future of the Union’s competitiveness.\u00a0 “Public investment is not enough. We need to find a systemic solution that mobilizes Europe’s immense private capital<\/strong>,” EU executive President Ursula von der Leyen <\/strong>urged,\u00a0<\/strong>ahead of what the Commission will have to advance after the mandate received last week from the leaders of the 27 member countries: “An essential part of this solution is the completion of the Capital Markets Union<\/strong>.”<\/p>\n

\"Ursula<\/a>
EU Commission President Ursula von der Leyen (April 23, 2024)<\/figcaption><\/figure>\n

Speaking today (April 23) at the last plenary session of the European Parliament for this legislature — before the June elections — the Commission chief\u00a0presented the outcome of discussions at the April 17-18 Extraordinary European Council<\/a>, particularly on the issue of competitiveness: “We have heard some very good ideas from Letta on our Single Market,” outlined in his\u00a0high-level report<\/a>. The most pressing issue is the “key factors that determine costs, prices, and productivity in Europe<\/strong>,” and it was from the EU leaders’ summit that the Commission received a “clear” mandate to move forward on three “vital issues,” President Von der Leyen made clear to MEPs. First and foremost is the harmonization of national rules<\/strong> “on issues such as insolvency” to provide investors with “the predictability they need,”\u00a0the design of “cross-border savings products for retail investors,”\u00a0<\/strong>and the strengthening of EU-wide supervision<\/strong>” of the most important market participants.”<\/p>\n

\u00a0All of this will converge in work in Brussels that will have a clear goal, according to von der Leyen: “ If we are to fund the new industrial revolution of our times, we must mobilize Europe’s private capital<\/strong>.” The urgency stems not only from years of “deadlock in the Council on many crucial aspects of the Capital Markets Union” but, above all, from estimates of the value added to the European economy: “EUR 470 billion \u2013 this is the additional private investment we could raise every year if we completed the Capital Markets Union<\/strong>.” The revival of this theme came with the conclusions<\/a> of the last European Council, in which the member states and the Commission were asked to commit to “all identified measures that are necessary to create truly integrated European capital
\nmarkets which are accessible to all citizens and businesses across the Union,” including by improving “convergence and efficiency of the supervision” over the “most systemically relevant” cross-border actors.<\/p>\n

\"Enrico<\/a><\/figure>\n

The head of the report on the future of the Single Market, Enrico Letta (April 18, 2024)<\/p>\n

“The\u00a0Capital Markets Union is our European Inflation Reduction Act<\/em>,”<\/strong> European Council President Charles Michel<\/strong>\u00a0claimed at the end of last week’s extraordinary summit, <\/strong>recalling that “the EU has 33 trillion euros of private savings. We need to find ways to channel them into our businesses.” Alongside him at the press conference, the Commission President von der Leyen anticipated the need for “a major push to move forward and focus on a common European framework<\/strong> <\/strong>that adds value, reduces costs, and facilitates access to capital.”<\/p>\n

What is the Capital Markets Union<\/h3>\n

The Capital Markets Union is a plan to make investments and savings flow throughout the Union “so that it can benefit consumers, investors, and companies, regardless of where they are located,”<\/strong><\/strong>\u00a0according to<\/a> the EU Commission. While the road began with the 1957 Treaty of Rome and continued with the free movement of capital enshrined in the 1992 Maastricht Treaty, the creation of a true Capital Markets Union has yet to be realized. In 2015, the\u00a0Jean-Claude Juncker<\/strong><\/strong>-led Commission adopted the first action plan<\/a>\u00a0with over\u00a030 initiatives that were supposed to create the building blocks of an integrated capital market in the EU by 2019. Due to the failure of this initiative, in September 2020, the von der Leyen Commission set out a new action plan<\/a> with 16 legislative and non-legislative measures with\u00a0three main objectives<\/strong>: <\/strong>“Supporting a green, inclusive and resilient economic recovery, making the EU an even safer place to save and invest for the long term, and integrating national capital markets into a true single market.”<\/p>\n

\"Mario<\/a><\/figure>\n

From left: former Italian prime ministers Enrico Letta and Mario Draghi, respectively responsible for the high-level report on the future of the Single Market and responsible for the report on the future of European competitiveness<\/span><\/p>\n

With the reports from Italy’s two former prime ministers, Letta and Draghi – on the future of the Single Market and the future of European competitiveness, respectively – the Commission\u00a0services will benefit from additional support, which is also accelerating the march toward a Capital Markets Union in the Council. “A concerning trend is the annual diversion of around \u20ac300 billion of European families\u2019 savings from EU markets abroad, <\/strong><\/strong>primarily to the American economy, due to the fragmentation of our financial markets,”\u00a0the Letta report<\/a>\u00a0underlines, highlighting\u00a0 “a significant inefficiency in the use of the EU’s economic assets.” The report calls for a\u00a0“significant transformation” through the “creation of a Savings and Investment Union, developed from the incomplete Capital Markets Union<\/strong>,”\u00a0 <\/strong>not only to “keep private European savings within the EU” but also to “attract additional resources from abroad.”<\/p>\n

In this context, former premier Letta warns that “without the private resources that will emerge from the establishment of a strong and authentic Savings and Investments Union, it will be extremely challenging to resolve the internal divisions within Member States concerning the allocation of national and European public resources<\/strong> needed to cover the costs of the transition.” In this regard, it is also necessary to recall what former premier Draghi\u00a0said<\/a> at the High-Level Conference on the European Pillar of Social Rights about his report on the future of European competitiveness. “The public sector has a big role to play.\u00a0We can take advantage of the great capacity to borrow in the market, but the bulk of investments must be covered by the private sector.<\/strong>” An explicit reference –speaking of the most appropriate instruments for investment — to “advance” the\u00a0work of the Capital Markets Union, not coincidentally defined as\u00a0“an indispensable part” of the overall strategy for European competitiveness<\/strong>: “The EU can count on a lot of private savings, but they often end up in bank deposits and do not help financial growth,” Draghi warned.<\/p>\n

\n","protected":false},"excerpt":{"rendered":"

Confirmation comes from the EU Commission President Ursula von der Leyen in her speech to the last plenary session of the European Parliament before the June elections. Harmonized national standards, cross-border savings products, and European supervision are the working guidelines to “finance the new industrial revolution of our time”<\/p>\n","protected":false},"author":5647,"featured_media":355627,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"1","single_blog_custom":"","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"0","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","number_popup_post":"1","show_author_box":"0","show_post_related":"1","show_inline_post_related":"0"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[25705],"tags":[26865,26324,26234,26270,25747],"class_list":["post-355678","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-union-of-capital-markets-en","tag-competitivita-en","tag-enrico-letta-en-2","tag-mario-draghi-en-2","tag-ursula-von-der-leyen-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.eunews.it\/en\/wp-json\/wp\/v2\/posts\/355678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging.eunews.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.eunews.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.eunews.it\/en\/wp-json\/wp\/v2\/users\/5647"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.eunews.it\/en\/wp-json\/wp\/v2\/comments?post=355678"}],"version-history":[{"count":6,"href":"https:\/\/staging.eunews.it\/en\/wp-json\/wp\/v2\/posts\/355678\/revisions"}],"predecessor-version":[{"id":357069,"href":"https:\/\/staging.eunews.it\/en\/wp-json\/wp\/v2\/posts\/355678\/revisions\/357069"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.eunews.it\/en\/wp-json\/wp\/v2\/media\/355627"}],"wp:attachment":[{"href":"https:\/\/staging.eunews.it\/en\/wp-json\/wp\/v2\/media?parent=355678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.eunews.it\/en\/wp-json\/wp\/v2\/categories?post=355678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.eunews.it\/en\/wp-json\/wp\/v2\/tags?post=355678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}