|
|
 |
Welcome to our Friends weekly e-mail.
Highlights of my week: The European Parliament elections have happened! The final turnout may top 51% - a 30 year high – and the swing to the right was more muted than expected. The big-three “pro-EU” centre parties may have slipped from 61% of the seats to 56% but including the Greens would bump them up to 63% - enough to provide working majorities on many issues. Attention is already swinging to the big EU jobs to be filled and the margins of today’s G7 meeting may provide an opportunity for some initial horse trading. However, the turmoil in Germany - and even more so in France - may determine the final implications for the EU and the think tanks are already mulling these over. The election hiatus has not stopped the flow of regulatory news completely as Council agreed its position on the retail investment strategy. CEPS put forward its priorities for payments; CEPR looked at the implication of bank supervisory boards’ competence; AFME commented on BCBS finalising its G-SIB assessment and SUERF cast light on market measures of concern about banks. The Shareholder Rights Directive revision also attracted attention whilst the Delors Centre pointed to the necessary €620 billion of green investment – which will not happen without more certainty on policy. The ECB’s Cipollone reviewed the reforms necessary to maintain the euro’s global role and Bloomberg’s Wooldridge highlighted the harm done to the Tory party by their Brexit policy and we await the possible July 4th “meteorite strike” on it as retribution. Graham Bishop Articles from 7-13 June 2024
Policy impacting Finance European Parliament: Election 2024: Updated seat projection for new European Parliament : Preliminary figures suggest an estimated turnout across the EU of 50,8%. View Article
Breugel's Demertzis: European elections results: all eyes are on France and Germany : While the European election results were mixed, two of Europe's biggest countries may face political turmoil View Article
EPC's Maurice: 2024 EU elections results: Limited change, great challenges : The pro-EU groups – EPP, S&D, the liberals and centrists in Renew Europe and the Greens – still hold the majority but will find it challenging to steer the political direction of the EU because of their differences on a number of issues like climate, migration or social policy. View Article
Chatham House: How will gains by the far right affect the European Parliament and EU? : Far right parties’ vote share did not increase on the scale some expected. But in the long-term, their ideas may affect EU policy on migration, environment, security and enlargement. View Article
CER: What will the EU election results mean for Europe? : The populist right and far right will not dominate the new European Parliament. But the election results will influence the EU’s agenda and legislation over the next five years. View Article
EURACTIV: All eyes on France, Germany and Italy as EU top job talks expected to gain traction at G7 : When the leaders of France, Germany and Italy meet informally on Thursday (13 June) on the sidelines of the G7 summit for the first time after the EU elections, they are expected to set the tone for the next weeks of EU top job discussions. View Article
Bruegel's Buti, Messori: Tough trade-offs: the big strategic issues for the next EU term : Three overarching economic policy trade-offs will set the context for the new Commission from the beginning of its mandate View Article
Carnegie's Panchulidze and Youngs: Beyond the Copenhagen Criteria: Rethinking the Political Conditions of EU Accession : As the EU accelerates the process of adding new member states, it also needs to rethink the relationship between enlargement and democracy. The union should develop a “Copenhagen plus” approach to encourage more comprehensive democratic reforms in candidate countries. View ArticleLSE's Dennison: The promise and meaning of the European Political Community after the 2024 EU and UK elections : The next meeting of the European Political Community will be hosted by the UK in July...coming shortly after the 2024 European Parliament elections and the UK’s general election, the meeting will offer an ideal opportunity for Europe’s new leaders to confront the continent’s many challenges. View Article
Banking Union SSM's Buch: Evolving risks – evolving supervision : " All of this triggers structural changes in the real economy and the financial system – changes that will take time to fully materialise and whose final effects are highly uncertain. These evolving risks mean that supervision also has to evolve, and it is evolving. .." View Article
AFME: Basel Committee on Banking Supervision: Global systemically important banks – revised assessment framework : We emphasize the importance of developing a revised G-SIB assessment framework based on the concept of a BCBS minimum standard, to support global compliance. Additionally, it is crucial that jurisdictions finalize their approach to averaging after the BCBS policy process has concluded. View Article
CEPS's Andersson, Arnal, Pozo : Priorities of the next European Commission for payments : This ECRI Explainer explores payments policy initiatives that will be the main focus of European legislation in the 2024-29 institutional cycle. They examine Level 1 – pending files, Level 2 – implementation of files, as well as Level 3 – recommendations for future policy developments. View Article
SUERF's Saldias, Scheicher: How do financial markets’ view risks in the global banking sector? A heatmap with a novel thermometer : Against the background of stress in the global banking system in spring 2023, we introduce a methodology to analyse how traders view risks in the banking sector. Our System-wide Bank Risk Sentiment Tracker (“sBRST”)1 relies on information from equities, credit spreads and options. View Article
CEPR's Hau, Radach, Thum: Insufficient supervisory board competence as a risk factor for banks : The Credit Suisse crisis illustrates how poor governance can lead a large bank into a crisis despite compliance with capital requirements. Recent research on supervisory board competence in banks has provided interesting new insights. View Article
Capital Markets Union Retail investment package: Council agrees on its position : The Council today reached an agreement on strengthening the EU’s rules on retail investor protection. The package supports individual consumers investing in capital markets, by better protection, clearer information about investment products and ensuring more transparency and disclosure. View Article
EFAMA: Council of the EU takes crucial step forward for retail investment : Improved Retail Investment Strategy approved but more work still to be done View ArticleBocconni's Bini-Smaghi: The political economy of the Capital Market Union : This paper examines the main factors underlying the failure to achive CMU, which are mainly of a political nature. They largely consist in not recognizing openly what are the main obstacles and the main driving forces opposing the realization of an integrated capital market in Europe. View Article
ICGN: Shareholder Rights Directive (SRD) Evaluation – follow-up questions : Despite the objectives of SRDII to remove obstacles to voting and participation ingeneral meetings, our members still observe obstacles in practice, in some EU MemberStates, including.... View Article
BETTER FINANCE answer to SRD Follow-up consultation (CSES/European Commission) : BETTER FINANCE continues to provide input to shareholders' rights consultations. We had previously highlighted the need for enforcing shareholders' rights, intermediary's chain transparency, streamlining of engagement process (such as voting at AGMs)... View Article
ESMA publishes latest edition of its newsletter : Your one-stop-shop in the world of EU financial markets focuses in May on the Position Paper with recommendations for more effective and attractive capital markets in the EU and includes a factsheet with the main highlights. View Article
ALFI responds to the ESMA consultation paper on the securitisation disclosure templates under Article 7 of the securitisation regulation : ALFI has in the past commented that overall these objectives have not or have only partially been achieved. ALFI welcomed the findings of the subsequent EU commission report on the functioning of the SECR and written to the EU commission and ESMA with an appeal to address this matter urgently. View Article
Commercial Risk: Europe’s Solvency II review will ease capital requirements by €80bn: S&P : Insurers’ solvency ratios will benefit by more than originally thought View Article
Environmental, Social, Governance (ESG) ICMA responds to the technical standards proposed by ESMA for the external reviewers of EuGBs : ICMA hosts the Principles that underpin sustainable bond issuances globally. In 2023, 97% of the global sustainable bond issuance volume aligned with the Green, Social, Sustainability, and Sustainability-linked Bond Principles (the Principles). View Article
AccountancyEurope: ESRS perspectives : The European Sustainability Reporting Standards (ESRS) have been effective since 1 January 2024 for the first companies in the Corporate Sustainability Reporting Directive’s (CSRD) scope. The ESRS introduce a new reporting framework - including new concepts which stakeholders may find challenging. View Article
Delors Centre's Jager: Almost a free lunch: Boosting investment predictability for the Green Deal : Implementing the EU Green Deal requires annual investments of about €620 billion, most of which will have to be shouldered by the private sector. However, businesses and households are not investing enough. An important lever for greater green investment is reducing uncertainty... View Article
BEUC: A consumer agenda for sustainable retail finance and banking : Consumers increasingly want to invest sustainably or in green technologies such as a heat pump or home renovation. This requires truly green investment options and affordable financing to be available. View Article
UNEP FI: How can an integrated approach to climate and nature risks help financial institutions navigate the future? : New research in the UK has found that damage to the natural environment could lead to a 12% reduction in GDP in the years ahead. This stark insight highlights the economic stakes and underscores the increasing relevance of nature-related risks in sectors such as life and health insurance. View Article
Protecting Customers ACCA and CISI join forces to enhance accountants' ethical AI skills : The Chartered Institute for Securities & Investment (CISI) and ACCA are working together to help the accountancy profession enhance its understanding of ethical issues when deploying AI View Article
Fin Tech Regulation EACH, ECSDA & FESE Joint High-Level Principles on DORA Implementation : Following the recent European Supervisory Authorities’ (ESAs) consultations on policy mandates under DORA, the associations would like to share their Joint High-Level Principles to contribute to ongoing discussions on DORA implementation. View Article
Broadening the International Role of the Euro ECB's Cipollone: Why Europe must safeguard its global currency status : More reforms are needed if the euro is to maintain and strengthen its role amid geopolitical shifts. Europe needs to further develop the infrastructure for making cross-border payments in euro with key partners. View Article
Brexit and the City TheCityUK calls for new era of certainty and collaboration to finance Britain’s future : Manifesto highlights five key areas to enable financial and related professional services make even greater economic contribution...Calls for policy certainty, stability and predictability and stronger collaboration with industry to be prioritised. View Article
FCA's Rathi: International regulatory developments affecting investment management : UK asset management – the second largest asset management centre in the world, responsible for £11 trillion of mainstream assets, roughly half of which is managed for overseas clients – is a global success story for the UK. It is undoubtedly a sector where the UK holds a comparative advantage. View ArticleCity AM: London listings to rebound from second half of 2024, broker predicts : Investment bank Peel Hunt, which helps big firms prepare for public listings, noted “continued acceleration” in the second edition of its “IPO Speedometer”..which remains in “second gear,”. “What has so far been a European-led IPO recovery has started to spread to the UK,” analysts said. View Article
Brexit UKandEU: Migration to the UK after Brexit: policy, politics and public opinion : With expert contributors, the report looks at the choices for the next government, covering integration, asylum, the role of AI in helping us understand public views on immigration, humanitarian migration routes, student migration, economic migration, the legacy of the Windrush scandal,.... View Article
NIER's Maroni: Productivity : This briefing focuses on the UK's poor productivity performance at national, regional and sectoral levels since the last election in December 2019, and policy recommendations to boost productivity, notably supply-side reforms as well as higher levels of both public and business investment. View Article
Bloomberg's Wooldridge: Tories Pay the Price for the Harms of Brexit : The Conservative government has damaged Britain’s most important trading relationship — and hurt itself immensely in the process. View Article
Follow us on
|
© Copyright 2024 Graham Bishop |
