Europe ETF News for the Past Year
New report sheds light on quality and use of regulatory data across EU
March 11, 2024--The European Securities and Markets Authority (ESMA), the EU's financial markets regulator and supervisor, is publishing today the fourth edition of its Report on the Quality and Use of Data aiming to provide transparency on how the data collected under different regulations is used systematically by authorities in the EU, and clarifying the actions taken to ensure data quality.
ESMA is bringing new developments in this edition such as connecting the dots with the overall ESMA Data strategy and technological evolution, including a greater coverage of datasets and sharing highly demanded information on data quality indicators.
The report provides details on how National Competent Authorities (NCA’s), the European Central Bank (ECB), the European Systemic Risk Board (ESRB) and ESMA use the data that is collected through the year from different legislation requirements, including datasets from European Market Infrastructure Regulation (EMIR), Securities Financing Transactions Regulation (SFTR), Markets in Financial Instruments Directive (MIFIR), Securitisation Regulation, Alternative Investment Fund Managers Directive (AIFMD) and Money Market Funds Regulation(MMFR).
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Source: ESMA
Enrico Letta's Report on the Future of the Single Market
April 10, 2024--Launched 30 years ago, the Single Market is the jewel in the crown of European integration, a source of common wealth. Faced with a more conflictual, volatile and complex world, a special effort in terms of strategic rethinking is required.
The European Council of 30 June 2023 called "for an independent High-Level Report on the future of the Single Market to be presented at its meeting of March 2024 and invites the incoming presidencies of the Council and the Commission to take this work forward, in consultation with the Member States".
Both countries and the Commission would like to find in it concrete and ambitious recommendations and asked the former Italian head of government, Enrico Letta, to write this report. The report is now available.
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Source: European Commission
ECB-Account of the monetary policy meeting of the Governing Council of the European Central Bank 6-7 March 2024
April 4, 2024-1. Review of financial, economic and monetary developments and policy options
Financial market developments
Ms Schnabel noted that, since the Governing Council's previous monetary policy meeting on 24-25 January 2024, monetary policy expectations had retracted further from the early and large interest rate cuts initially foreseen at the turn of the year.
More favourable news on the global economy and less favourable news on inflation had both been key factors in shaping financial market developments. In the case of the first factor, macroeconomic data surprises had moved into positive territory in the euro area, the United States and China for the first time since May 2023. As a result, investors attached a discernibly lower probability to the scenario of a hard landing for the global economy.
The second factor related to a reassessment of the medium-term inflation outlook. Higher than expected inflation releases in the euro area and the United States, especially for core inflation, had dented investors' hopes of rapid and smooth disinflation.
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Source: ecb.europa.eu
Spend it at home: current account surpluses in the EU
April 2, 2024--EU leadership needs to identify the factors that hold investment back and the incentives that could persuade investors to stay in Europe
The European Union faces huge investment gaps. For the climate and digital transitions alone, EU countries need to find or encourage annual investment of at least €481 billion each year, over and above what is already planned. This amount is much larger if one includes defence spending needs, the reconstruction of Ukraine, and spending to prepare for potential health crises in the future.
And yet, despite these huge investment gaps, the EU continues to send a large part of its savings outside its borders. It has huge savings but prefers to invest these abroad rather than within its own borders. The European Commission forecasts that nine EU countries will have current account imbalances in 2024. Of these, five will have current account surpluses that can be as large as 10% of GDP. The EU overall is forecast to have a surplus exceeding 2.5% of GDP by 2025.
In nominal terms, EU GDP is about €18 trillion. A surplus of 2.5% of GDP thus represents about €450 billion. If the EU could use these excess savings, it would manage to cover its climate and digital investment gaps almost in full. Solving the enormous inconsistency of having big investment gaps while running with large current account surpluses is urgent and complex.
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Source: bruegel.org
ESMA publishes latest edition of its newsletter
April 2, 2024--The European Securities and Markets Authority (ESMA), the EU's financial markets regulator and supervisor, has today published its latest edition of the Spotlight on Markets Newsletter.
Your one-stop-shop in the world of EU financial markets focused in February and March on EU Green Bonds and our extensive activity on the Markets in Crypto Assets Regulation (MiCA). In both cases, we invited stakeholders to send their feedback on 1. rules for External Reviewers of EU Green Bonds and 2. on the third MiCA consultation package. On the latter, ESMA is seeking input on:
Detection and reporting of suspected market abuse in crypto-assets;
Policies and procedures for crypto-asset transfer services;
Suitability requirements for certain crypto-asset services and format of the periodic statement for portfolio management; and
ICT operational resilience.
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Source: esma.europa.eu