On 15 March 2017, The European Financial Services Round Table (EFR) has submitted its input to the European Commission's consultation, which will form the basis of the Mid-term Review of the CMU Action Plan in June 2017.
The EFR fully supports the European Commission's policy initiatives in delivering a much-needed CMU. The European Union should place particular focus on creating a genuinely single market. Closer integration of the financial markets and greater competitiveness of EU capital markets will ensure that the single market serves as a reference for regulatory best practice within Europe and globally.
It is acknowledged that progress has already been made on various specific CMU initiatives and EFR supports a rapid implementation of the pending proposals. But it is also noted that for instance the current infrastructure measures need to go much further if they are to succeed in delivering the desired step change in investment.
EFR also welcomes the Commission's goal to develop an overarching and comprehensive EU strategy on sustainable finance as part of the Capital Markets Union and the EU is encouraged to focus its effort on increased transparency and clarity around sustainability risks, securing the availability of capital for green projects and understanding, managing and mitigating sustainability risks.
EFR expresses its concern that other key aspects of the CMU currently in train are at risk of failing to deliver. In this respect, the current Trilogue negotiations on the proposal for an STS Framework run the risk to lead to a too restrictive framework and might not lead to a significant expansion of the European securitisation market indeed it may hinder this.
In order to deliver a deep and well-functioning CMU, further policy actions and/or proposals still need to be developed. For those actions, the EFR has reiterated the proposals that were tabled in the EFR Paper on CMU of May 2015, the EFR Paper on Infrastructure of March 2015 and the EFR Paper on Securitisation of February 2016, which contain all issues that still should be addressed.