Covered bonds framework - Related Opinions

The EESC welcomes the new set of measures proposed by the European Commission to complete the Economic and Monetary Union (EMU) and move towards an optimal monetary zone. The EESC supports the various proposed goals for reinforcing the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM). The EESC welcomes that the present communication provides scope for a broader discussion and for a phased approach to implementing the European Deposit Insurance Scheme (EDIS) and underlines the importance not to lose momentum in implementing the Banking Union. Finally, the EESC reiterates its commitment to a diverse financial ecosystem in which the large pan-European players coexist with small and medium-sized banks and other non-banking entities that focus reliably on the financing of the real economy on an equal footing, in an environment of much reduced systemic risk.

This opinion is part of a wider package of four EESC opinions on the future of the European economy (Deepening of the Economic and Monetary Union and Euro area economic policy, Capital Markets Union and The future of EU finances). The package of opinions underscores the need for a common sense of purpose in the Union governance, which goes far beyond technical approaches and measures, and is first and foremost a matter of political will and a common perspective. The EESC is strongly in favour of the Capital Markets Union (CMU) and finds it absolutely necessary that the CMU becomes a reality in all EU Member States and calls for the political will at European level and in the Member States to make all necessary efforts and to establish all of the relevant conditions required.

The EESC very much welcomes the Commission’s package of proposals and hopes that it will contribute effectively to complementing the work done after the crisis to reform the financial sector. The Committee welcomes the underlying holistic and integrated approach and believes that the proposed measures will undoubtedly help strengthen Europe’s prudential and resolution framework for banks. The Committee also these proposals will enable progress to be made not only in further advancing the Banking Union, but also in implementing its third pillar, the European Deposit Insurance Scheme and that certain specific adjustments in the proposals should facilitate the pursuit of a Capital Markets Union.

As the recovery of Europe's economies remains sluggish and fragile and the level of investment remains low, it should be a matter of priority to deploy every possible means to achieve a robust and stable economy. The Committee therefore endorses the goals of the action plan i.e. to mobilise capital in Europe and channel it to all companies, infrastructure and long-term projects. The Committee has serious concerns, however, regarding the relevance and effectiveness of the capital markets union for SMEs. They must be able to choose the funding channels that suit them best. At the same time the EU's economic and financial stability should be one of the priorities of the capital markets union. There should thus be more simplification, transparency and comparability of financial instruments.