The European Banking Federation supports the vision of Enrico Letta on the Future of the Single Market

BRUSSELS, 18 April 2024 – The EBF very much welcomes the publication of Enrico Letta’s report on the Future of the Single Market published today. The cooperation dates back to 2019 in the context of the Markets4Europe campaign of which Mr. Letta agreed to be a leader.

We are grateful to Mr. Letta for having included the European Banking Federation amongst the stakeholders consulted to elaborate the Report. We took the opportunity to provide our views on how to strengthen the EU single market with respect to the integration and development of Europe’s capital markets to serve the needs of Europe’s innovative companies, its citizens and the prosperity of its economy in general.

More precisely, the European Banking Federation strongly supports Mr. Letta’s remarks on the following:

1. The importance of Capital Markets in mobilizing private capital, a crucial step that lays the groundwork for a more inclusive and efficient financing framework. Europe needs more capital markets financing than ever before. From the aging population to the need to finance entrepreneurship and sustainability, key mechanisms for savings and investments needed by citizens require a well-functioning, deep, resilient capital market that reaches every corner of Europe while restoring its global competitiveness.

2. The call for reforms in the European securitization framework to enhance is accessibility and effectiveness. The report acknowledged that securitisation acts as a unique link between credit and capital market and offers significant potentials in diversifying the pool of assets available for investment and facilitate additional financing. The EBF believes it should be a priority for the next term.

3. The need to catch up and strengthen the Single Market dimension for financial services, making the market evolve towards a European dimension. The attempt to create the Capital Markets Union over the past decade has not been successful, among other causes, because it has been perceived as an end in itself. The job of creating a Capital Markets Union is not yet complete in terms of establishing efficient and competitive market infrastructures, efficient and enabling rules and regulations, as well as sufficient supply and demand for capital markets.  

4. The paths that still need to be undertaken to achieve the goal. The Single Market is an ongoing project and should not be perceived as a completed endeavour. To develop an efficient single market capable of creating the conditions to make Europe prosper, action is required at each level. Specific and targeted actions are needed at both EU level, to further integrate the market, and at Member States level to further deepen it. Indeed, EU regulatory actions must be complemented by national government actions that boost the supply and demand for capital markets. A “capital markets mindset” is required at Member States level, as well as citizens level, to make them aware of the benefits of a well-functioning capital market and what actions they can undertake.

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Media inquiries:

Gabriel Daia
Head of Communications and Public Affairs, g.daia@ebf.eu, +32 483 50 98 86

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About the EBF

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from 45 countries. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere. Website: www.ebf.eu Twitter: @EBFeu.