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17.06.2025 16:36
Securitisation: From poison to medicine for Europe’s competitiveness
The EPP Group wants a streamlined, well-regulated securitisation market to boost Europe's competitiveness without drowning it in bureaucracy.
Today, the European Commission unveiled its proposal to overhaul the EU’s securitisation framework. Securitisation pools individual loans into tradable instruments, thus unlocking capital on banks’ balance sheets. This is an important element of the Capital Markets Union, helping to provide our European companies with liquidity and make Europe more competitive. Markus Ferber MEP, who is the EPP Group Coordinator in the European Parliament’s Economic and Monetary Affairs Committee (ECON) explained:
"Well-functioning capital markets mobilise private savings, finance innovation and build resilient infrastructure. Securitisation might have a bad reputation, but it can be a crucial tool to advance European capital markets. Securitisation unlocks fresh funding channels, drives down borrowing costs and supports long-term growth. It might have once been considered a poison, however, this was more than 15 years ago and in a completely different context. It can be a medicine for Europe’s competitiveness if properly done and regulated.
European securitisation markets have collapsed due to ill-designed legislation. EU markets are a fraction of US markets - that is a competitive disadvantage. If we don’t modernise our securitisation framework, we risk leaving billions of euros idle on the sideline.
I welcome the Commission’s decision to tackle the shortcomings of the current system head-on: we need more risk-sensitive capital charges and streamlined procedures. We must get it right this time. The Commission proposal contains some elements that might create more cumbersome red tape that could stifle a market revival rather than foster it. Complexity is the enemy of competitiveness. We cannot let a flood of new definitions and reporting obligations kill off the very market we seek to build."
Note to editors
The EPP Group is the largest political group in the European Parliament with 188 Members from all EU Member States
Committee Coordinator
Press Officer for Economic and Monetary Affairs, Taxes, Transport and for Austria
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