As part of the Next Generation EU, the Commission will propose by June 2024 new own resources, which could include an EU Financial Transaction Tax (FTT). Even though some of our concerns have been taken into account by narrowing the scope of the current proposal, it still is economically harmful and should be abandoned. The FTT proposal is incompatible with other political and regulatory objectives such as the Capital Markets Union, the encouragement of long-term investment and investment in equities. Given the potentially harmful effect of this measure, we have outlined some key recommendations for the Commission in the following paper.
Financial transaction tax (FTT)
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Revitalising EU securitisation
Mobilising private capital for long-term, productive investments is critical to advancing the EU’s green and digital transitions and realising the objectives of a Savings and Investments Union (SIU). However, the EU securitisation market has seen a significant decline since the global financial cri-sis and has since continued to lag behind comparable markets. Previous efforts to revive the EU secu-ritisation market, such as the introduction of the EU Securitisation Regulation and the Simple, Trans-parent and Standardised (STS) label for traditional securitisations have not meaningfully improved the situation.
Whilst not the panacea to all of Europe’s funding challenges, learn why revitalising securitisation in Europe will help unlock private finance and thereby create better conditions for the financing of the EU economy.
Strengthening predictability in the draft Foreign Subsidies Regulation Guidelines
The draft Guidelines to the Foreign Subsidies Regulation (FSR) risk broadening the already excessive reach of the FSR and making its application even less certain for industry, adding to already disproportionate costs and complexities for businesses. The Guidelines should take the opposite approach, seeking to clarify unclear concepts related to the FSR’s application, hone its scope to focus only on subsidies with a demonstrable EU nexus and align the FSR’s treatment of foreign incentives with EU State aid rules.
Enabling more competitive financial markets with the European Savings and Investments Union
The Savings and Investments Union (SIU) is an opportunity for Europe to facilitate and deliver innovative financial services that create better outcomes for investors. Through targeted regulatory reforms and new initiatives, private and public sector actors can put retail investors at the core of their vision. But significant challenges remain, despite efforts to eliminate market barriers and reduce costly compliance. Learn how an ambitious SIU will allow the EU to gain momentum towards a complete Single Market.
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