German Chancellor Olaf Scholz is calling for greater freedom for banks within the EU to move capital. The goal is to allow them to more efficiently allocate resources and liquidity across the bloc. Scholz has emphasized the need to improve the conditions for cross-border banking operations.
Deutsche Bank faces hurdles in cross-border transfers.
Many credit institutions, including Deutsche Bank, have difficulty moving money between EU countries. Existing restrictions prevent them from effectively consolidating cross-border. Removing these obstacles would allow them to invest where they achieve the best results and support their expansion into other countries.
Calls for reform are coming from various sides.
Scholz’s initiative follows pressure from the European Banking Association, which has called the banking sector “strategic.” Another voice in this discussion is Deutsche Bank CEO Christian Sewing, who recently attended a banking conference.
In addition to greater capital mobility, Scholz is also advocating for harmonization.
In addition to greater flexibility in capital movement, Scholz has stressed the need to harmonize national insolvency laws, introduce more uniform tax standards, and create common rules for capital market supervision. Work is already underway intensively on concrete proposals in these areas in cooperation with the French government.
Some propose strengthening ESMA.
Some EU officials are proposing to strengthen the European Securities and Markets Authority (ESMA) by granting it greater powers. The aim is to create a strong agency similar to the US SEC (Securities and Exchange Commission).
Intense discussion and action expected.
Scholz’s initiative and the discussion on harmonization within the EU signal an effort to make cross-border operations easier for banks and support their growth across the EU. Intense discussion and preparation of concrete steps are expected in this area in the coming months and years.
Additional Information:
- Scholz’s initiative is part of a broader effort to strengthen and integrate the EU banking sector.
- Harmonizing national laws would simplify cross-border operations for banks and reduce their costs.
- Strengthening ESMA would help ensure stability and consistency in EU capital market supervision.
Conclusion:
Pressure is mounting for reform of the EU banking sector. Scholz’s initiative and the discussion on harmonization are just the beginning of a process aimed at creating a more favorable environment for banks and supporting their growth across the EU.
