EU markets need a single regulator

The largest global wealth fund this week will tell the European Union that “better and more simply regulating” is crucial for the market reforms it urgently needs.

“The European markets are lagging behind in terms of business dynamics and the provision of new investment opportunities for institutional investors,” Norges Bank Investment Management, the largest only investor in EU capital markets, said in a letter addressed to the European Commission, which will be sent to the European Commission.

The letter comes as part of EU consultation regarding the creation of a Union for Save and Investment Frame for optimizing the financial systems of the block. EU has been discussed for more than a decade and focused on creating a Union of Capital Markets To increase investment and save streams throughout the region.

NBIM, the huge oil and gas revenue manager in Norway, had 285 billion euros ($ 325 billion) securities issued by EU Member States and European corporations at the end of 2024. The total value of the fund was about $ 1.9 trillion in 2024, according to his Annual reportwith 71% of its assets in shares and 26.6% with fixed income.

The main recommendation is that “capital market supervision should be united at European level,” the letter said. The EU lacks one regulator of the security market or regulations covering all trade and this leads to legal uncertainty, operational complexity, long processes and inconsistent interpretations, continued.

In the meantime, the EU must deal with the regional fragmentation in the Law on Securities, Corporate Law, bankruptcy and tax regimes and standardized the process of issuing Pan-European debt, the statement said.

“European capital markets can become more dynamic, efficient and better positioned to facilitate future economic growth with policies that improve offering productive investment opportunities and increase demand for high-end investment,” NBIM said.

Attitudes to European markets among global investors have undergone a noticeable change in the last six months set by political shocks in the United States and expectations for regulatory reform and Higher fiscal costs in the EUS “Europe is growing and taking control of its own fate, which can be positive for macro trends,” Blair Jacobson, co -chairman of the Ares Management Private Stock Company, said at a conference last weeknoting that there was more factor in Europe than a US press factor