At the ECOFIN Council meeting in Luxembourg, the Minister of National Economy and Finance and President of the Eurogroup, Kyriakos Pierrakakis, with the main topic being the Banking Union and the package on market integration and supervision.
The Greek minister emphasized the need for more unified European supervision, arguing that the completion of the Capital Markets Union cannot move forward as long as cross-border activities are monitored through different national practices.
Beginning his remarks, Kyriakos Pierrakakis referred to the British series “Yes Minister,” saying that critical political issues are often lost amid overly technical discussions.
As he said: “I would like to begin by pointing out something that is obvious to many of us in our countries: when we try to describe the Savings and Investment Union in broader terms, it is a highly technical matter”.
He added: “Sir Humphrey, an iconic figure in the series, had a unique ability to turn the most important political issues into extremely complex technical discussions.”
The minister noted that the goal of the discussion is specific: more investment, greater liquidity, and stronger financing of the European economy from European savings themselves.
Pierrakakis: “Europe must finance its future”
Kyriakos Pierrakakis noted that the changes under discussion concern the entire market spectrum, from trading platforms to crypto-assets and investment funds.
“We want deeper capital markets, more investment, and more innovation. We want European savings to finance European growth, and we want a Europe that can finance its future more effectively.”
He revealed that at the Eurogroup dinner with the former president of the European Commission, Jean-Claude Juncker, the question was raised as to what the most important unfinished European project is.
According to the minister, Jean-Claude Juncker replied immediately: “The Capital Markets Union.”
The Greek minister stressed that the process must be completed by the end of the year, during the Irish presidency.
“There is no single market with 27 different supervisory approaches”
In the more political part of his remarks, Kyriakos Pierrakakis argued that Europe needs stronger common institutions, especially for entities with a significant cross-border presence.
As he stated: “We cannot expect to create a truly integrated capital market when cross-border activities are supervised through 27 different supervisory perspectives and practices.”
The minister made it clear that strengthening the role of ESMA is not a theoretical institutional debate but a fundamental prerequisite for a more competitive European market.
He also made special mention of crypto-asset service providers (CASPs), noting that supervisory criteria must take into account not only the size but also the growth potential of these businesses.
At the same time, he acknowledged the role of national supervisory authorities, while insisting, however, that a clear division of responsibilities is needed between European and national structures.
“The rule is simple: Europe must regulate what is European, and national authorities must supervise what is national.”
Concluding his speech, Kyriakos Pierrakakis cited Airbus and the establishment of the European Central Bank, saying that Europe’s great successes were not built on fragmented national approaches.
“A Capital Markets Union without adequate European supervision is like a Monetary Union without the European Central Bank.”
