EU Capital Markets Union Gains Momentum As Germany Opens To ESMA Oversight

The German government has indicated openness to giving the European Securities and Markets Authority (ESMA) greater oversight, a move that could remove a key obstacle to the EU’s capital markets union (CMU).

Germany’s Finance Minister, Lars Klingbeil, has agreed to examine areas suitable for centralised supervision, covering equity trading exchanges, central counterparties, and asset management, while excluding cryptocurrency regulation. The discussions aim to establish a joint Franco-German position ahead of an EU leaders’ meeting in December. The European Commission plans to propose a law later this year. France has supported stronger ESMA powers, while Germany and France are working to avoid additional bureaucracy. Other EU countries, including Luxembourg and Cyprus, remain opposed to increased centralisation.