Savings and Investment Union: EU Commission picks up the pace

With today's proposals, the EU Commission is addressing two key issues relating to the Savings and Investment Union: uniform European supervisory practices and better market integration. Deutsches Aktieninstitut welcomes the European Commission's ongoing development of the framework for capital markets and emphasises the need to support this with capital market-oriented pension provision.

‘A well-developed and integrated EU capital market is key to Europe's innovative strength, competitiveness and strategic autonomy,’ comments Henriette Peucker, Chief Executive and Member of the Board of Deutsches Aktieninstitut. ‘For listed companies, it is also important that market liquidity is concentrated more strongly in transparent markets. More ambition is needed here.’

The EU Commission's package of measures aims, among other things, to reduce the fragmentation of the capital market, facilitate cross-border capital investments and promote the use of blockchain technology in the capital market. Raising investment limits offers actively managed funds better opportunities to invest in fast-growing companies.

Specifically, the package of measures includes steps to further harmonise supervisory practices, amendments to the EU's Markets in Financial Instruments Regulation (MiFIR), adjustments to the regulation of central securities depositories and asset managers, and additions to the DLT pilot regime. The package is also in line with the European Commission's recent recommendations to member states on the introduction of investment savings accounts and supplementary pension schemes. 

‘The wealth of recent proposals shows that many adjustments need to be made simultaneously for capital markets to develop,’ says Peucker, assessing the proposal. ‘Better market integration, uniform supervisory practices and new technologies can only unfold their full potential in conjunction with deeper and more liquid European markets. This requires significantly more equities in pension provision and wealth accumulation, allowing citizens to benefit directly from business success.’