Capital Markets Union

Germany's commercial banks have called on the government to introduce extensive reforms to get the economy moving again. And they are pressing for a postponement to the introduction of Basel III.

Federal Chancellor Olaf Scholz (SPD) has promised the German finance industry that he will work towards the further rapid development of Capital Markets Union and Banking Union.

The discussions on Capital Markets Union are regaining momentum. As part of this process, the German Banking Industry Committee and French Banking Federation recently presented a joint position paper to their respective Finance Ministries.

The Capital Markets Union finally has a real chance of being implemented – after years of merely talking about it. Because it's no longer just about bank or market financing. It's about prosperity and security – in other words, it's about the fundamentals.

The banking industry and politicians are advocating a reform of securitisation rules in Europe. Commerzbank Deputy CEO Bettina Orlopp, Barclays Germany CEO Ingrid Hengster and State Secretary Jörg Kukies are confident that a political agreement is within reach.

The building blocks of the Capital Market Union are of great importance to the EU Securities and Markets Authority (ESMA). The head of the authority warns against focusing solely on regulation in the project.

There is a lot of talk about the Capital Markets Union – but little is happening. French Finance Minister Bruno Le Maire has now made a proposal. Some elements of it are not convincing. But at least Le Maire is focussing attention on one crucial point.