European financial services chief Maria Luís Albuquerque says it is ‘possible’ to reach an agreement on the pending legislation needed to achieve the Capital Markets Union. She says political will among co-legislators will be key to get it done as she pushes for ambitious timeline.
It will "be possible for the European Union to reach a deal on the Capital Markets Union within a year", European Commissioner for Financial Services Maria Luís Albuquerque told Euronews’ flagship interview programme, The Europe Conversation.
"I think it’s possible to have a discussion and an agreement within one year. We just need our co-legislators to share the same sense of urgency and level of ambition that we have", the Commissioner said during an interview in Brussels.
Albuquerque acknowledges that, although the package includes multiple files, the decisive factor in the legislative process is political will rather than policy.
"It is a big package, but the challenge does not lie in the number of legislative pieces. It’s about the political willingness we have to put into it," she added.
After falling behind the United States in terms of attractiveness for international investors, market players and capital deployment, the EU is looking to boost its own capital markets union to bolster investments and keep the flow of cash in the single market rather than extending a capital exodus to the US market.
Former European Central Bank chief Mario Draghi, who penned an influential report published last year and whose advice is well respected among policymakers, has urged Brussels and the capitals to remove internal barriers to bolster the EU27's internal market.
Single market is 'revolutionary' but needs completition
While highly integrated and sophisticated, the single market is not yet fully completed as key areas like the capital markets union remain unfinished.
Draghi said internal barriers did more damage to the European economy than external tariffs. The Italian banker has also called to provide more flexibility, streamline regulatory procedures and called on the EU to work closer together than 27 separate units.
Albuquerque agreed, calling Draghi a compass for the Commission.
"The single market is probably the most revolutionary thing created in Europe, but it still needs to be completed. And we are working very hard on that to actually allow for the full potential of Europe," the Commissioner said.
The Commission also noted challenges when with implementing and interpreting EU legislation across different member states, which makes it burdensome for European companies looking to expand in Europe but often facing what is known as gold-plating.
This happens when member states add national regulations on top of existing EU rules, which make it harder and more expensive for companies to do business and disincentivises investments. Commissioner Albuquerque urged to remove fragmentation and deal with gold-plating decisively to build a real investment catalyser.
"We are keeping this money in twenty-seven different pockets, and that's what's not working. We really need to work and address these barriers that keep us fragmented", the Commissioner said.