According to the document, control over key market infrastructure will be gradually transferred to the Paris-based European Securities and Markets Authority (ESMA). It is about oversight of trading floors and central securities depositories, Reuters reports.
Support for the reform from the so-called E6 group significantly increases its chances of adoption. The initiative requires a majority of EU countries – at least 15 states representing at least 65% of the EU population – to approve it. The bloc’s six largest economies unite about 70% of EU residents.
The ministers also spoke in favor of expanding the powers of European authorities in the control of the cryptoasset market and for the reduction of administrative barriers for cross-border investment funds. According to the authors, this should make it easier for European companies to attract capital and increase the competitiveness of the EU economy against the backdrop of rivalry with the United States and China.
Germany has withdrawn its objections
Germany’s position has attracted particular attention. Berlin has long been considered one of the main opponents of transferring supervisory powers to the pan-European level. However, German Finance Minister Lars Klingbeil has publicly supported the compromise in recent weeks, saying that the country is ready to “move forward” for the sake of strengthening Europe. According to him, the success of the pan-European project is more important than narrow national interests.
At the same time, the agreement also takes into account Germany’s concerns. The document emphasizes the need for strict cost control, transparency of ESMA’s work and accountability of the regulator. In addition, part of the German market infrastructure will not be subject to mandatory pan-European supervision.
