EU countries want more joint financial market supervision

EU countries want more joint financial market supervision With more joint financial market supervision, the EU countries want to strengthen trust in the markets. Will the Deutsche Börse be supervised from Paris in the future? (dpa) The EU countries want to more Europeanize the supervision of important financial transactions and financial markets in Europe. At a meeting in Luxembourg, the finance ministers of the member states expressed this, stating that supervisory powers over significant cross-border actors should be transferred to the European Securities and Markets Authority (ESMA) based in Paris. The proposal is part of the so-called capital market union: For years, work has been done to further promote the convergence of the European capital markets, which are still fragmented along national borders. This is to mobilize more private investments—which are urgently needed for the upgrading of Europe, digitalization, and the move away from fossil energy. Klingbeil: "Significant step" A more unified supervision over those market operators who are considered particularly important for the EU economy should also strengthen trust in the markets, it was said in a statement. This includes, for example, certain trading venues, certain providers of crypto services, and certain central custodians. The latter are responsible for the safekeeping and transfer of securities. Federal Finance Minister Lars Klingbeil called the agreement a "very important and significant step." The SPD politician further said: "We want there to be more investments, secure jobs in Europe, and for that we need more investment and we need an environment where this is possible." To date, financial market supervision in the EU lies mainly with the national authorities. ESMA only supervises certain financial market actors directly. In the future, the European supervisory authority will supervise cross-border trading venues based on certain thresholds, at the will of the countries. According to reports, the trading activities of the Deutsche Börse are not included in this for the time being. Every two years, the EU Commission shall assess whether the criteria are still appropriate given market developments. Basis is a proposal from the European Commission Earlier, in the spring, the six most economically powerful EU states—Germany, France, Italy, the Netherlands, Poland, and Spain—agreed on a common position on the issue of supervision. The basis for the agreement is a proposal from the European Commission from last year. Now, the EU countries still have to negotiate this with the European Parliament.