“ Major legislative proposals are under consideration that may have far-reaching impacts on Europe’s financial system”
At the time of writing AFME‘s Annual Review last year, we could not have anticipated finding ourselves on yet another unpredictable course of events. Europe is in the midst of another crisis – the invasion of Ukraine, rising inflation and fragmentation of capital markets are all causes for concern. To combat such a sudden economic shock, Europe even more than before needs a resilient and diversified financial system.
Over the last year, AFME has focused on key policies aimed at strengthening European capital markets, to ensure their growth and competitiveness.
The green and digital transition remains one of our main priorities. The financial sector plays a crucial role in underpinning the transition to zero greenhouse gas emissions, notably by helping to allocate capital and providing long-term investment in ways that are consistent with achieving key climate objectives.
With current estimates by the European Commission that Europe will need around €645bn of financing per year for the green and digital transition, it becomes increasingly obvious that capital market financing will need to lend its support.
AFME continues to support the completion of the Capital Markets Union (CMU) and Banking Union (BU) in the EU. These initiatives will contribute to the strengthening and integration of EU financial markets, but the political push to deliver these policies is still needed.
Currently, EU legislators are also debating a set of major proposals for Europe’s secondary markets in the ongoing review of the Markets in Financial Instruments Regulation (MiFIR), which governs how markets function. In this context, AFME has put forward recommendations to recalibrate the legislation so that it is geared towards EU equity and fixed income markets that work for investors, corporates and other capital market users.
In the meantime, the UK has also embarked on its own review of the current financial services regulatory framework and set out detailed objectives in the context of the UK Wholesale Market Review. AFME contributed detailed recommendations to the Review and welcomed the majority of final proposals....
much more at AFME
© AFME
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article