With this opinion the EESC takes the opportunity to comment on how the European market for retail financial services can be further opened up. The EESC welcomes that the Commission is on track and has an ambitious programme for implementing the Action Plan on Building a Capital Markets Union, also endorsing that consumers should be given the opportunity, whenever possible, to compare different products, so they can make an informed choice.
The EESC welcomes the establishment of economic priority programmes for the euro area at the start of the European Semester. To achieve a recovery of growth and employment a mix of financial, taxation, budgetary, economic and social policies is needed. In contrast to the recommendation of the Commission, the focus of fiscal policy should be designed to be more expansionist than neutral. The EESC advocates the reduction of taxation on labour insofar as it does not threaten the financial sustainability of social protection systems. The EESC calls for a coordinated effort to create a more business-friendly environment for SMEs through better regulation, adequate financing and facilitation of exports to markets outside the EU. There is a particular need to open up new funding opportunities for micro-enterprises and start-ups.
The introduction of further risk sharing is to be accompanied by further risk reduction in the Banking Union. Both the EDIS and the relevant risk reduction measures have to be dealt with in parallel and without delay and actually put into effect. An EDIS will have a positive impact on the situation of individual Member States and banks by being more able to cushion local shocks. This may discourage speculation against specific countries or banks, thus reducing the risk of bank runs. At the same time it will further weaken the link between the banks and their national sovereigns. It is imperative that the existing legislative framework of the Banking Union is fully implemented by all Member States. It is important that the Commission carry out a comprehensive in-depth impact study in order to further strengthen the legitimacy of the proposal.
The euro area needs to step up its external representation. This will strengthen its relative weight in international financial institutions and give it a more prominent position in international financial markets. The EESC endorses the rationale behind the two Commission documents and agrees with the main elements of the three-phase scenario to gain a single euro area chair at the IMF by 2025. At the same time, however, the EESC proposes that the Commission also draft scenarios for making stronger and more effective the links with other relevant international bodies, taking particular account of their remits. The EESC also recommends clearly and explicitly defining the roles of euro area external representation and their dovetailing with those of the EU as a whole, with a view to preserving the integrity of the single market.
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.
The EESC welcomes the proposals to establish a system of "simple, transparent and standardised" securitisation (STS securitisations), that should enable significant additional resources to be generated for bank funding. That is very important, for SMEs and households in particular. There should be clarity as to the risk involved and who bears that risk, taking account of the whole chain from the issuer to the investor. It is important now is that the mistakes of the past are not repeated. Small investors and consumers should not have access to securitisation due to the complexity and risk involved, the Committee calls for a formal prohibition to be explicitly included in the texts.
A genuine stabilisation of the economic and monetary union (EMU) can only succeed if the deficits in the EMU architecture are solved and to this end major reforms are undertaken. The longer the current austerity policy continues, that primarily looks at spending cuts without the addition of an effective investment plan and measures to enhance income through growth, social cohesion and solidarity, it will become increasingly clear that Europe's economic integration and prosperity is at risk from growing social inequalities. The EESC calls for greater "parliamentarisation" of the euro area, with a grand EP committee comprising all members of parliament from the euro area and from those countries wishing to join (26 Member States), combined with stronger coordination of members of parliament from the euro area on EMU issues (COSAC +).
The EESC wants the conditions be created for an efficient, modern financial services sector with appropriate regulations, which grants access to capital providers by companies seeking investment, especially SMEs and high growth companies, and finds it of utmost importance to overcome the current fragmentation of the markets.
Since a Capital Markets Union (CMU) is to a significant extent a reality for large companies, the EESC stresses the need for measures that will also allow SMEs to benefit from it, for example through accepting simplified standardised criteria for registration on regulated markets, and providing a definition of an emerging growth and high growth company and devoting special attention to the needs of such companies on the capital market.