Reforming the ESFS is an important step towards completing the CMU

Financial integration

Advocating swift establishment of the Capital Markets Union (CMU), the EESC endorses the Commission's proposals aimed at reforming the bodies of the European System of Financial Supervision (ESFS) by increasing their competences and improving their governance and funding.

"The proposed reforms are an important step towards more integration and convergence," said Daniel Mareels (Employers, BE), rapporteur for the opinion on ESFS – Reforms. "They provide new building blocks for completing the CMU and ensure that financial markets are well-regulated, strong and stable".

In the Committee's view, a smoothly operating CMU with integrated supervision would contribute to more cross-border market transactions, and private, cross-border risk-sharing would make Member States more resilient to asymmetric shocks and contribute to economic recovery in the euro area.

The EESC believes that the ESFS reforms must contribute to achieving a single European capital markets supervisor, but that further steps towards integration require dialogue and consultation with all relevant stakeholders.

Regarding the establishment of the competences of national and European supervisory authorities, it urges applying the principles of subsidiarity and proportionality where possible and ensuring clarity and legal certainty. In addition, shortcomings in supervision that impede the realisation of the CMU should be tackled.

Looking to the future, the EESC considers that new developments and technologies – such as FinTech - as well as more sustainable financing should be reflected in the system of supervision. Finally, the Committee calls for ensuring transparency of any alterations in the distribution of costs and appropriate control of overall resources. (jk)