Competitive capital markets decisive for European growth

“Europe needs one thing above all else: more growth. And growth will require significant investments into digitalisation, infrastructure, defence and transformation, investments that will only be possible with the help of powerful capital markets” said Heiner Herkenhoff, Chief Executive of the Association of German Banks.

“International investors must be able to easily invest in this continent. It’s the only way to mobilise the capital needed for investments into the EU’s future.”

The Association of German Banks is calling for progress towards a true Savings and Investment Union, which will finally provide the push the European capital markets need to become the engine driving growth. This would simplify cross-border investments and increase the attractiveness of investing within Europe. Despite umpteen initiatives, Europe’s financial markets remain fragmented, have less liquidity than comparable international markets and are overburdened by regulations. They have so much untapped potential.

“Brussels’ excessive bureaucracy and complex processes place unnecessary obstacles in the EU’s path. We need simpler regulations and more agile processes. The capital markets should promote growth; too many detailed regulations make that impossible,” according to Herkenhoff.

The Association of German Banks is calling, among other things, for simplified reporting obligations, harmonised market processes, a powerful European securitisation market and technology agnostic regulations.

“It’s the best way to create a stronger economy, improve resilience and guarantee Europe’s sovereignty. Our continent has everything we need to keep up with global competition. But we must act decisively, and act now!”