Trésorier/Treasurer magazine - N°90 - July/Aug/Sep 2015 - (Page 60)

NEWS LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE - N°90 - JULY / AUG / SEP 2015 - Building a Capital Markets Union 60 The EU Commission's priority is jobs and growth. To get Europe growing again, one of the European Commission main challenges is to unlock investment in Europe's companies and infrastructure. The 315 billion EUR investment package will of course help to kick start that process. But to really strengthen investment for long term, EU Commission needs to build a true single market for capital - a Capital Markets Union (CMU) - for all 28 member States (see: http://eur-lex.europe.eu/legal-content/ EN/TXT/?uri=CELEX:52015DC0063). Compared to other parts of the world and in the US, European businesses remain heavily reliant on banks for funding and relatively less on capital markets. A stronger capital market would complement banks as an alternative source of funding. There is no single measure that delivers a CMU. Instead, there will be a range of steps. EU Commission needs to identify and remove the barriers which stand between investors' money and investment opportunities, and overcome the obstacles which prevent businesses from reaching investors. We all need to make sure the system for channelling these funds, the investment chain, is as efficient as possible, both nationally and across border. All stakeholders have been welcomed to comment and to answer a long list of questions set up but the European Commission. EACT has prepared a comprehensive answer, which includes a lot of side comments on other regulations which have or will affect and impact treasurer's daily activities. EACT welcomes the European Commission's aim to create a CMU and is naturally in favour of all initiatives that aim to reactivate and support the European economy. The CMU as an opportunity for the EU to move beyond a post-crisis financial regulation agenda and re-focus financial regulation, putting the needs of the real economy at the centre of policy initiatives. The wave of financial regulation since 2009 has concentrated on ensuring financial stability and on reducing the likelihood of a similar crisis recurring. Whilst this was necessary, these measures have had some serious negative consequences and constraints on non-financials companies' ability to fund them, manage their risks and handle their liquidity. The central objective of this project must be the funding of the real economy; this should be supported by a framework of financial regulation in the EU creating a financial system that helps companies to conduct their business. This cannot be achieved without a holistic approach to all financial regulation: embracing legislative initiatives already taken those that are currently being discussed and those that will be proposed in the future. The shortage of capital market funding is not (by far) the only structural issue non-financial companies are suffering from today in terms of the current environment. Many aspects of past legislation and the initiatives currently in discussion are detrimental to the real economy and create unnecessary burdens on businesses without contributing in any way to financial stability. These should be tackled simultaneously with this initiative so as to improve overall the way in which the financial system supports the real economy. It is important for European companies that funding sources are diversified and that generally speaking Europe seeks to balance bank funding with non-bank sources. The end objective should be that European companies have the choice of and access to different and varied funding sources but that the real economy does not wholly depend on the health of the banking (for more details about answer, please visit: www.atel.lu ). François Masquelier Chairman of ATEL http://www.atel.lu

Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°90 - July/Aug/Sep 2015

Cover
Table of contents
EDITORIAL
FINANCIAL HIGHLIGHTS Luxembourg Tax News
INTERVIEW DataLog Finance
FOCUS
What do financial leaders around the world earn?
BIG DATA in treasury
Credit rating agencies in the line of fire?
FORUM
Hedge accounting: New standard, new challenges
Cyber Risk: Can Insurance be an Answer?
When FX Volatility hits your Corporate Earnings - How
Best to Manage your Currency Risk
Repo cash management - how it works in practice
20 ans de AXA IM, l’histoire continue
CORPORATE FINANCE
Time for more sophisticated corporate investment strategies
VAT electronic audit file: not too late to act, but no more time to lose
Focus sur l’actionnariat salarié
Struggling with cash forecasting? You are not alone
Coupling Delegation of Authority (DOA) with Bank Account Maagement (BAM)
15 MINUTES AVEC INTL FCStone
THE RISK OBSERVATORY
NEWS
LIFE BEYOND NUMBERS

Trésorier/Treasurer magazine - N°90 - July/Aug/Sep 2015