Emmanuel Macron and Olaf Scholz in favor of a European savings product to boost growth

Emmanuel Macron and Olaf Scholz in favor of a European savings product to boost growth
Emmanuel Macron and Olaf Scholz in favor of a European savings product to boost growth

France and Germany want the creation of a “European savings product” in order to mobilize private capital in the service of growth, declared French President Emmanuel Macron this Tuesday, May 28, 2024.

“We decided together to call for the creation of a European savings product”said the French leader during a press conference in Germany alongside Chancellor Olaf Scholz, regretting that, due to a lack of adequate instruments currently, hundreds of billions of euros “are leaving European soil to invest” in the USA.

Developing European capital markets

The European Union suffers from the fragmentation of its capital markets, divided between the different member countries.

It has been discussing proposals for years to benefit from scale effects comparable to the American market. But these debates stumble over divergent interests within the Twenty-Seven.

The French Minister of Finance Bruno Le Maire had already launched the idea, in February, of a “European savings product” with those EU states that so wish.

Boosting EU competitiveness

Less than two weeks before the European elections, Olaf Scholz and Emmanuel Macron are due to discuss a Franco-German roadmap to boost the competitiveness of the EU in the face of competition from China on Tuesday evening in Meseberg, near Berlin. and the United States.

In particular, they want decisive progress on the Capital Markets Union (CMU), a “financing supermarket” which has struggled to see the light of day for years within the EU. Paris and Berlin have not yet agreed on all the terms of this project.

“To mobilize the necessary investments, we need to seriously consider the question of a truly integrated European financial market, structured around a banking union and a capital markets union”wrote the two leaders in a joint column Monday in the daily Financial Times regretting that “too many companies are turning to the other side of the Atlantic to finance their growth”.

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