Federal Finance Minister Lars Klingbeil (SPD) is pushing for rapid agreement in the ongoing negotiations regarding the planned Capital Markets Union. Speaking at the E6-format Finance Ministers’ meeting on Thursday-a gathering intended to establish a common position among the six largest and most economically powerful EU member states-Klingbeil criticized the pace of progress. “Sometimes it feels like we are advancing in Europe at a snail’s pace” he stated, adding, “The world isn’t waiting for us”.
The goal of this reform is to offset the EU’s investment deficit when compared to the United States and China. The SPD politician emphasized the need to significantly increase reliance on and mobilize private investment alongside public projects. “The European capital market is a game-changer for this” he said. While acknowledging that Europe is already a highly attractive location, he stressed that “the objective must be for us to become the most attractive economic region in the world”.
A central sticking point in deepening capital markets is market supervision. Specifically contentious are the roles and powers of the European Securities and Markets Authority (ESMA) versus those retained by national bodies such as the Federal Financial Supervisory Authority (BaFin).
Klingbeil strongly asserted his belief that the current era demands cooperation rather than strict national demands. “I am firmly convinced that the times in Europe must be times where not every nation insists on 100 percent, but where we are capable of building bridges” he argued. He concluded with a call for national sacrifice on behalf of a stronger Europe, stating, “To achieve this, we must make compromises as Germany, and we must look beyond national borders if we want a strong Europe”.
