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Proposal for Skopje Spring Congress 2020 03 - 05 April 2020

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Submitted at Friday, 6. March 2020 um 12:03 Uhr, in category "Chapter 4 – Business, Economy, Finance and Tax, Cross-Cutting Policies" with No. 405. Author/s: "Momentum TizenX.

The Skopje Spring Congress 2020 may decide:

European Capital Markets Union

Considering that:

 

  • European firms and individuals still face considerable degrees of inequality when it comes to their financing costs, terms and possibilities, with Greek companies commonly borrowing at 2-3% higher interest rates than their comparable German counterparts.
  • the differences in the cost of credit are a cause for concern, since they prevent various actors of the European economy from enjoying a level playing field.
  • there is significant evidence to suggest that countries most prone to bank-dominated financing have been hit the hardest by the last recession, further demonstrating the need for more diversified sources of funding.
  • Europe’s fragmented equity markets prevent companies (especially collateral-constrained startups) and their potential investors from collaborating in an efficient manner, with countless business projects failing to gain momentum as a consequence.   
  • lack of legal harmonisation of financial regulation hinders the possibility of cross-border investment and risk-sharing.
  • the profound divisions between national capital markets tend to make individual countries more exposed to local economic shocks, with consumption dropping dramatically as a result.
  • as Brexit unfolds, the loss of the British liquid capital market raises the urgency of the issue. 

LYMEC calls for:

  • the creation of a cohesive framework for capital market integration across the continent
  • the lowering of legal barriers for non-EU investments making their way into the continent.
  • the European Commission to pursue policies that allow for a reduction of the dependence on bank-funding and a diversification of the sources of capital available to SMEs.
  • following the example of Germany, France and the Netherlands in their practice of legal harmonisation of the capital markets on an EU-wide level.
  • The implementation of a centralized mechanism that allows for the improvement of insolvency practices in order to decrease interest costs by a significant margin.

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Amendments for this proprosal:

  • Zu diesem Antrag liegen keine Änderungsanträge vor.
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