Europe is facing vast financing needs in the coming years to deliver the sustainable finance, digital and energy transitions. While it is clear that Governments will not be able to fund these needs alone, it will be difficult for the financial sector to meet - without proper securitisation - the financing requirements.
If the policymakers wish to deliver on their promises that they have made towards the European population, they must endeavour to address the important topic of securitization, which is an indispensable tool to develop capital markets as well as to finance the energy transition. Securitisation was identified by the European Commission in 2020 as one of the key actions to complete the CMU.
As Europe’s financing needs cannot wait, we should now focus on solutions that we know can work quickly towards a CMU - such as facilitating securitisation.
While often in international meetings - as well as in bilateral meetings - policymakers and politicians agree that securitisation could play an important role, no significant action has been undertaken mainly due to the stigma that is attached to it.
Therefore, the EFR calls to make securitisation an effective instrument for the European financial sector so that savings and assets under management of institutional investors (pension funds, insurance companies, asset managers, etc) can be mobilised and used to invest in Europe instead of other jurisdictions such as the USA.