Capital Markets Union: EESC comments on new listing requirements and EMIR review

On 23 March, the EESC adopted two opinions on the Commission's latest work to further develop a fragmented and underdeveloped EU Capital Markets Union: a new Listing Act and a review of the European Market Infrastructure Regulation (EMIR).

With a new Listing Act, the Commission aims to reduce the administrative burden of the listing process for companies of all sizes, particularly SMEs, so they can better access funding by listing on European public markets.

The EESC welcomes the initiative, as increasing equity funding and reducing dependence on bank loans for European companies are key to ensuring the post-pandemic recovery and building a resilient economic system. The Committee believes that bringing more family-owned companies to capital markets would open up untapped potential to attract capital for growth.

EESC rapporteur Kęstutis Kupšys explains that "a multiple-voting rights regime helps families to retain control, making listing more attractive to them. It is also important to streamline the contents of a prospectus to significantly reduce the costs and burden for issuers. However, using "English-only" issuance documents, as per the Commission's proposal, would hinder the development of a national retail investment base."

The Commission has also proposed a new European Market Infrastructure Regulation (EMIR) to enhance the clearing capacity within the EU. On EMIR, the EESC had expected a clearer stance on reducing exposure to UK central counterparties (CCPs), as well as more specific rules and incentives to drive the move towards EU-based CCPs after Brexit.

EESC rapporteur Florian Marin said: "There is not a clear plan containing specific measures to create a competitive and consolidated clearing market. We regret that the current framework has not been assessed after five years, and propose that the European Securities and Markets Authority (ESMA) issue a report on the reasons for the use of non-EU CCPs one year after the Regulation enters into force." (tk)