Press release

EMF-ECBC welcomes European Commission announcement of Capital Markets Union Action Plan

Brussels, 24 September 2020 – For immediate release

The European Mortgage Federation – European Covered Bond Council (EMF-ECBC) welcomes today’s announcement by the European Commission of its new Capital Market Union (CMU) Action Plan. As the present context of the COVID-19 pandemic has demonstrated, the European Union is stronger and more efficient when it acts collectively.

Therefore, the EMF-ECBC salutes the Commission’s initiative to take account of national particularities whilst pursuing further integration within the European Single Market. Representing the voice of the mortgage and covered bond industry, the EMF-ECBC expresses its support for the further integration of the continent’s capital markets and is seeking to play its part in this project. The EMF-ECBC is seeking to mobilise its members and other private stakeholders to support and reinforce the CMU’s long-term funding capabilities via both the traditional covered bond asset class in housing and public sector finance, as well as through the development of a new dual recourse instrument for SME financing – the  European Secured Note (ESN), especially in terms of the ESG potential of these asset classes.

In the aftermath of the current circumstances, the opportunity must be seized to strengthen and accelerate the transition to a more sustainable economy with greater market transparency, so as to benefit both consumers and lending institutions, fully in accordance with objectives of the Green Deal and the NextGenerationEU Recovery Plan.

In this context, the EMF-ECBC believes that the CMU Action Plan published today will contribute to putting in place the framework for a truly single market for capital across the EU, which, in turn, will help increase the Union’s financial stability and support the recovery of the European economy. Furthermore, the EMF-ECBC – through its membership – remains committed to fulfil its role of financing and supporting the economic recovery in line with European sustainable finance and environmental policies.

Commenting on the European Commission’s announcement, Luca Bertalot, EMF-ECBC Secretary General said:

“As a long-time supporter of the Capital Markets Union project, we welcome today’s publication of the CMU Action Plan and especially its sharpened focus on ensuring that the recovery will be green. This is reflected in our own work at present to build a green Bauhaus system in Europe with multisector synergies for consumers, lenders and investors via the Energy Efficient Mortgage Label. This is part of the wider objectives of the Energy Efficient Mortgages Initiative, which seeks to be a socio-economic driver for the Green Deal and, as such, a fully functional CMU will help realise the move towards a transition economy.”