European asset managers back Letta report emphasis on furthering single market

EFAMA said on 18 April that European asset managers supported the ex-Italian prime minister Enrico Letta report, published on the same day, with its emphasis on furthering the single market and mobilising private capital.

Together with the recent statement of the Eurogroup in inclusive format on the future of CMU, and the upcoming report of Mario Draghi, there is increasing emphasis on EU competitiveness and the need to make urgent progress towards achieving a well-functioning Capital Markets Union to finance Europe’s necessary transitions.

EFAMA said in a statement that it urged EU policymakers to "leverage that strong momentum and take decisive actions" in the next legislative term, following the EU parliamentary elections.

Asset managers form a significant part of the investment sector in Europe and EFAMA highlighted that its members are ready to support policymakers in these goals.

The Letta report stresses the importance of turning idle savings into productive investments in the EU economy, proposing a “Savings and Investments Union”, which will require a combination of EU and national policy measures to empower citizens and create a stronger investment culture.

EFAMA cited its recent publication, “Unlocking private investment to fund Europe’s triple transitions”, which offered concrete policy recommendations to that effect.

EFAMA director general, Tanguy van de Werve, said: “While we will need some time to analyse Enrico Letta’s report, we welcome its high level of ambition and the determination to make a leap, cut red tape, strengthen the Single Market and allow EU companies to compete on a global level.

"More competitive European companies will naturally attract more capital and enjoy better financing conditions, thereby further reinforcing their competitiveness.

"Enrico Letta correctly identifies that when it comes to boosting EU capital markets, better connecting the real economy with European citizens’ savings will be a key driver of success. We now need bold actions from all stakeholders involved to turn that vision into reality.”