The AMF calls on the European Commission for an ambitious strategy on the Savings and Investments Union project
The Autorité des Marchés Financiers calls for an ambitious approach from the European Commission to enable rapid and concrete progress to foster the development of EU financial markets. The Authority publishes its contribution to the consultation of the European Commission, which will present its strategy for the Savings and Investments Union on 19 March, and proposes three priorities.
In terms of financial services, the Savings and Investments Union is the project of our generation! At the end of the last century, our predecessors built the single currency, which is now proving to be a valuable shield against financial shocks. Putting an end to the fragmentation of European financial markets and finally allowing them to develop is now a necessity if the financial engine is to give Europe the means for its strategic autonomy and political choices. It is our responsibility to move this project forward, and the AMF has a role to play.
Launched on 3 February, the Commission's call for evidence aims to gather the views of all stakeholders on the key issues that need to be addressed to ensure the full success of the Savings and Investments Union.
EU capital markets have lost many opportunities for their development and attractiveness in recent years. However, the European Union, more than ever before, needs massive funding up to €1 trillion per year, to finance its climate and digital transitions, as well as its defence. A strong response is warranted to strengthen EU capital markets. This would give EU investors new opportunities to invest and finance the real economy, innovation, job creation and a social model that reflects their values. Consequently, EU investors must be at the heart of this initiative to ensure its success.
The AMF believes that this success is possible if the EU gives itself the means to achieve its ambitions, and highlights three priorities:
- encourage retail investment in the European economy: the abundant savings of EU households need to be better channelled into financing the EU economy through long-term investments. An EU label, together with a favourable tax treatment, should distinguish the most attractive products for the long-term financing of European businesses. Simplifying the customer journey for investors, without compromising on their protection, should also facilitate the channelling of savings into investment.
- strengthen European supervision: the fragmentation of capital markets’ supervision is an obstacle to their development. It also entails financial risks, a race to the lowest regulatory standards to the detriment of investor protection, and is one of the main causes of regulatory complexity in Europe. The AMF therefore calls for decisive progress towards a more integrated supervision of financial players at the EU level, without which no real simplification will be possible.
- relaunch the securitisation market: the securitisation of bank loans is essential to restart the credit engine; it is also a unique opportunity for the development of capital markets, offering investors safe securities backed by high-quality loans. The AMF sees the revision of the Securitisation Regulation as an opportunity to boost the European market, which is underdeveloped compared to the United States, while maintaining the high level of security that is the hallmark of EU securitisations.
The AMF will actively contribute to the work of the EU institutions, in particular the Commission, following the publication of its Communication on the proposed Savings and Investments Union project, scheduled for 19 March. The AMF will shortly publish more detailed proposals on European supervision.
About the AMF
The AMF is an independent public authority responsible for ensuring that savings invested in financial products are protected and that investors are provided with adequate information. The AMF also supervises the orderly operations of markets.Visit our website https://www.amf-france.org/en
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