Capital markets integration package: a good starting point that needs more ambition

The EU Commission has proposed to eliminate barriers to integration of asset management, trading and post-trading services, to improve supervision and to further integrate capital markets. This proposal is a core part of the Savings and Investments Union and a long-awaited reform that the EESC has long called for. The proposal includes measures the EESC has repeatedly recommended in different Opinions, such as the central supervision by the European Securities and Markets Authority (ESMA) of capital markets infrastructure operators with significant cross-border activity. We also welcome the efforts to facilitate innovation and remove regulatory obstacles to the use of Distributed Ledger Technology (DLT), which are decentralised digital system for sharing and synchronising asset transactions without the need for a central authority.

Now, we call on the co-legislators to accept the proposals in this package, with special focus on supporting central supervision for certain market operators. It is crucial that supervision leads to the same outcome all along the EU, that a level playing field is preserved, and that authorities avoid overlapping layers of supervision resulting in duplicate requirements and inefficiencies.

More ambition for the benefit of the EU economy

Capital markets do not only allocate capital but reflect the confidence of a society in its own future. We are convinced that the package of the European Commission points to the right direction to improve both the allocation of capital and the confidence on our own future, but greater ambition is necessary.

In fact, more ambition should go hand in hand with measures by Member States to develop local markets, to remove overlapping reporting obligations, and to ensure a level playing field in relation to external actors. We pay particular attention to Systematic Internalisers (SIs), that should be more transparent, introducing provisions for data and information disclosure. This is especially important considering that a large market share relies on US operators.

We also call for the creation of an EU-level framework for ‘covered cross‑border bonds’ under ESMA supervision. This approach builds on successful experiences in the US where this regime benefited late‑stage companies that managed to raise capital and attract external investors.

In addition, the European Commission should assess proposed changes to the settlement facility to ensure that the disapplication of standard insolvency rules is not unduly broadened, as this could undermine legal certainty or the balance between systemic protection and creditor rights.

Overall, the EU Commission proposal is a key step forward that we welcome. We expect co-legislators to avoid watering down the proposal during the negotiations, and that more ambition is translated into favorable legal changes and sound supervision. The future of the EU relies on the success of capital markets and ambition is key to achieving this.

By Antonio GARCÍA DEL RIEGO, EESC Employers' Group member and Rapporteur of Opinion ECO/694 EU market integration and efficient supervision.