EU's six largest economies back joint capital markets supervision

Finance ministers from the six largest economies in the EU—Germany, France, Italy, Poland, Spain, and the Netherlands—have reached a consensus endorsing a proposal from the European Commission for unified oversight of capital markets. This agreement, revealed by Germany’s finance ministry on Friday, seeks to enhance the region's competitiveness in light of sluggish growth and challenges from the US and China. Significant market infrastructure oversight will gradually shift to the European Securities and Markets Authority (ESMA) based in Paris. During their meeting in Berlin on Thursday, German Finance Minister Lars Klingbeil emphasized that this decision reflects a commitment to prioritize the EU's collective interests over national concerns. The European Commission initially introduced its plan to integrate EU capital markets in December. Additionally, the ministers agreed that ESMA's governance should ensure a mix of expertise, supervisory experience, and geographical representation, as noted in a document reviewed by Reuters.