EU market needs a single regulator

This week, the world’s largest sovereign wealth fund will tell the European Union that “better and simpler regulation” is a key to the reforms of the markets that it needs urgent.

“The European markets lagged behind in terms of business dynamism and providing new investment opportunities to institutional investors,” said the largest uniform investor in the EU capital markets addressed on Tuesday.

The letter comes as part of Consultation of the EU on the creation of a Union of conservation and investment Frame for streamlining the block systems. The EU has been discussing for over ten years and moving towards creating a Union of capital markets To increase investment and savings in the region.

NBIM, the manager of huge oil and gas revenues in Norway, had 285 billion euros (325 billion) in securities issued by EU member states and European corporations in late 2024. The total cost of the fund amounted to about $ 1.9 trillion in 2024, according to it, according to it, according to it, according to it, according to it, according to it, according to him, according to him, according to him, according to him, according to him, according to him, according to him. accordance from it, in accordance Annual reportWith 71% of their assets in stocks and 26.6% with fixed income.

The key recommendation is that “capital supervision should be united at the European level,” the letter reads. The EU lacks a single security regulator or rules that cover all trades, and this leads to legal uncertainty, operational complexity, prolonged processes and inconsistent interpretations.

The EU should, meanwhile, resort to regional fragmentation in the legislation on securities, corporate legislation, insolvency and tax regimes, as well as standardization of the debt issue process in the common European debt, the statement said.

“European capital markets can become more dynamic, effective and better located to facilitate future economic growth through a policy that raises the supply of productive investment capabilities and increase the demand for high-yield investments,” NBIM said.

Feelings to European markets among world investors have undergone a noticeable shift over the last six months undergoing Political upheaval in the US and expectations for regulatory reform and higher financial costs in the EU. “Europe is growing and takes under its own destiny, which can be positive for macro tenders,”-Blair Jacobson, co-chairman of the private firm Ares Management, said at a conference last weekNoting that Europe had more craving factor than the US -pressed factor