“More integrated capital markets are key to unlocking Europe’s potential and ensuring its ability to operate in an increasingly complex global environment,” Euronews quoted the E6 letter as saying.
The capital markets legislation being drafted in Brussels is considered a top priority for the union and should help Europe become more competitive and less dependent on the US and China.
Remove regulatorybarriers
The aim of the union is to create a single capital market where money, including investments and savings, can flow freely across borders without regulatory barriers.
Currently, capital markets are heavily regulated by national law, which leads to fragmentation and complicates conditions for businesses and investors.
While EU leaders emphasize that forming a Capital Markets Union is a key measure to create a favorable single market, there is still no unity within the bloc itself on how to implement integration.
Among the E6 group’s main proposals to overcome fragmentation is the transfer of some powers to the European Securities and Markets Authority.
However, some member states are in no hurry to cede sovereign powers to regulate capital markets.
To move the legislative process forward, the E6 countries need the support of nine more countries. The law can only move forward with the support of at least 15 countries representing 65% of the EU population.
