Capital Markets Union mid-term review Public hearing - Brussels 11 April 2017

CMU implementation so far and key challenges and priorities for the mid-term review

• Guntram Wolff (Bruegel)
• CMU is not a quick fix substitute for repairing the bank lending channel, but should be seen as a structural and LT transformation of the financial intermediation in the EU ; it will take time, cannot be done in 2-3 years
• Twin and distinct objectives of deepening and integrating capital markets
• EU likely to remain reliant on banking for funding
• CMU is about savers, intermediaries and non-financial firms; the real issue is about savers: how can they be incentivised to increase equity investments; taxation and insolvency harmonisation are highly important in that respect
• Supervision of CCPs is one of the key issues
• Brexit is an opportunity for progressing in the CMU, forces to think in a structural way; it is an additional reason for reinforcing ESMA’s role to avoid market fragmentation and regulatory race to the bottom to attract business ; importance of LT consequences of current decisions

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