German insurers calling for more ambition in CMU development

Written by Adam Cadle

21/03/2024

German insurers are calling for more ambition in the further development of the Capital Markets Union (CMU).

European Union finance ministers recently set out priorities for creating a CMU over the next five years to attract private capital to Europe and help fund the transition to a ‘green’ and digital economy.

“The CMU has been a project for more than a decade, and progress so far has been insufficient,” GDV CEO, Jörg Asmussen, said.

“The European financial market is as fragmented as it was ten years ago. Governments must overcome their national egos in order for the Capital Markets Union to progress. The same applies to the related Banking Union project. A large and liquid capital market is a central building block for the EU's competitiveness in the global context. The new EU Commission should press ahead with the Capital Markets Union.

"Among other things, it is important to improve the financing conditions for start-ups and to facilitate access to venture capital by removing regulatory barriers. A central stock exchange for IPOs in the EU, especially in the tech sector, would also be helpful to ensure that they take place in Europe. To this end, all the necessary regulatory conditions need to be put in place."

Asmussen added that further harmonisation of insolvency laws could facilitate cross-border
investments, especially in view of the great financing needs for the transformation.

German insurers also believe that strengthening a user-friendly investment environment through simple and understandable information and disclosure requirements is among the challenges for the next five years.

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