Hesse State Government Expresses Concerns Over EU Plans for Exchange Oversight
The government of Hesse state has voiced opposition to proposals from the European Union concerning the transfer of oversight responsibilities for the Frankfurt Stock Exchange to the European Securities and Markets Authority (ESMA) based in Paris. State Premier Boris Rhein (CDU) and Minister for Economy Kaweh Mansoori (SPD) emphasized the significance of decentralized control for Frankfurt’s financial hub during a statement issued Tuesday in Wiesbaden.
Premier Rhein cautioned against the potential risks associated with centralization within the financial sector. He argued that particularly during periods of economic volatility, decentralized oversight is crucial to ensure swift and informed responses to market conditions. Relocating authority to Paris, he contended, could lead to increased bureaucracy and potentially weaken Frankfurt’s standing as a major financial center.
Minister Mansoori underscored the principle of subsidiarity, stating that decisions should be made at the level closest to where they have the most impact. He highlighted the extensive experience and expertise of Hesse’s current oversight mechanisms, which have proven successful over decades and possess a detailed understanding of the local financial landscape. A shift in responsibility, he warned, could jeopardize this valuable expertise and erode the agility of the regulatory response.
