EU’s Largest Economies Align on Unified Capital Market Supervision Proposal

BERLIN — The finance ministers of the European Union’s six largest economies (E6) have reached a common agreement regarding a European Commission proposal for centralized capital market supervision, according to Germany’s finance ministry.

The initiative, introduced by the European Commission in December, aims to deepen the integration of EU capital markets by shifting supervisory responsibility from individual national authorities to the Paris-based European Securities and Markets Authority (ESMA).

This transition toward EU-level supervision is designed to enhance the bloc’s global competitiveness, particularly as Europe faces stagnant growth and intense economic pressure from the United States and China.

The German finance ministry emphasized that strengthening Europe’s sovereignty, resilience, and competitiveness is critical in the current geopolitical landscape, describing the agreement as a significant milestone toward the creation of a comprehensive capital market union.

The agreement follows a meeting in Berlin on Thursday involving ministers from Germany, France, Italy, Poland, Spain, and the Netherlands.

While the E6 are aligned, the remaining 21 EU member states must still provide their consent. Germany’s finance minister expressed confidence that the final package will be adopted by the end of 2026.

Key points of the agreement include reducing barriers for cross-border funds to facilitate corporate financing and granting ESMA oversight of major market infrastructures. Additionally, the ministers agreed to expand the powers of EU supervisory bodies regarding the trading of crypto-assets.

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