AFME Applauds European Council’s Push for New Competitiveness Deal

AFME Applauds European Council’s Push for New Competitiveness Deal

(IN BRIEF) The Association for Financial Markets in Europe (AFME) lauds the European Council’s recent conclusions advocating for a “new European competitiveness deal,” which underscores the importance of deepening the Single Market and advancing the Capital Markets Union (CMU). AFME sees this as pivotal for enhancing the EU’s global economic competitiveness and long-term prosperity. The Council’s support for relaunching securitisation, developing equity financing, and harmonising insolvency laws lays a crucial foundation for fostering growth in the European capital market. AFME’s CEO, Adam Farkas, emphasizes the urgency of transforming the EU’s capital markets into a globally competitive, integrated entity to safeguard the region’s future growth and competitiveness. He highlights the benefits outlined in Enrico Letta’s report discussed at the summit, stressing the advantages of a single capital market in nurturing EU companies and financing strategic priorities. AFME eagerly awaits further developments, including Letta’s roadmap for a Savings and Investments Union, and urges Member States to adopt ambitious strategies in alignment with these goals.

(PRESS RELEASE) LONDON, 20-Apr-2024 — /EuropaWire/ — The Association for Financial Markets in Europe (AFME) welcomes the conclusions of the Special Meeting of the European Council of 17-18 April in which EU leaders recognise the need for a “new European competitiveness deal”.

The European Council’s call to deepen the Single Market and advance the Capital Markets Union as part of this new deal is, in AFME’s view, key to securing a globally competitive EU economy as well as the EU’s long-term prosperity. More specifically, its support for relaunching securitisation, developing equity financing and harmonising insolvency laws forms a strong and necessary basis for growing the European capital market.

Commenting on the conclusions reached, AFME’s CEO, Adam Farkas, said, “Deep, liquid and integrated capital markets are an essential component for supporting the EU’s competitiveness. There is increasing urgency to transform the EU’s existing capital markets into a globally competitive, scaled-up and single capital market. Without this, the region’s future growth and competitiveness are at stake.

“Member States all stand to gain from the scale that a truly integrated EU capital market can offer. Enrico Letta’s report discussed with leaders at this week’s Summit highlights clearly these benefits. They include the ability to grow EU companies within the Single Market rather than see them develop outside the EU once they reach a certain size, and to channel the resources necessary to financing strategic priorities, including the twin transition of our economy by leveraging both European private savings as well as capital flows from abroad.

We welcome Mr Letta’s focus on highlighting the benefits of a renewed single market project and how increased financial integration is necessary to support the EU’s strategic goals. We look forward to considering his roadmap to build on the existing CMU project to form a Savings and Investments Union in further detail and strongly encourage Member States to take inspiration from his ambitious suggestions when forming their strategic agenda over the coming months”.

Media Contact:

Rebecca O’Neill
Head of Communications and Marketing (Interim)
rebecca.oneill@afme.eu
+44 (0) 7386 658 525

SOURCE: AFME