“Given that geopolitical competition is increasing, the Savings and Investments Union must be aimed at encouraging more people to invest, strengthening the European capital market, and securing Europe’s economic resilience over the long term,” explains BVR President Marija Kolak. Right now, she adds, a single European capital market represents an attractive opportunity for investors. However, it is important that strategic progress is made without delay. 
 
According to Kolak, the Savings and Investments Union needs to be specifically aimed at strengthening the European capital market if it is to create genuine value added for EU citizens and businesses. This includes providing support for securitization in order to increase the availability of capital and make investing easier. It is also important to establish a shareholder culture by offering an attractive taxation framework and improving financial literacy so that more people can access the capital markets. Moreover, the idea of a pension securities account should be revisited with the aim of encouraging long-term investment in private pensions and thereby raising people’s financial security.

Negotiate CMDI independently of the SIU
The BVR is critical of the overly broad approach being taken by the European Commission, which wants to include the reform of bank resolution and deposit insurance (CMDI) as well as a European Deposit Insurance Scheme (EDIS) in the SIU. “The Commission should concentrate on strengthening the capital markets,” says Kolak, setting out the BVR’s demands. “The CMDI reform must continue to be negotiated separately in order to focus on securing the stability of the banking system. But, at the same time, the autonomy of the deposit guarantee schemes and institutional protection schemes need to be maintained.”

The BVR also rejects the idea of more uniform supervision. Instead a balanced regulatory framework is needed that takes into account the size and risk profile of banks, for example with separate prudential requirements for small institutions.