Klingbeil in Frankfurt: Billion dollar package for Europe's capital market!

Klingbeil in Frankfurt: Billion dollar package for Europe's capital market!

Federal Finance Minister Lars Klingbeil (SPD) visited Frankfurt today with the aim of strengthening the financial center and driving forward the Capital Markets Union in Europe. He emphasized the need for more investment in Germany. A central element of his visit was the announcement of a billion-dollar package that would flow into both infrastructure and defense. Klingbeil is also planning a “growth booster” that includes improved depreciation options and tax cuts for companies. These measures are intended to promote the growth of the German economy and capitalize on geoeconomic challenges, such as news.de reported.

As part of his visit, talks are planned with the French Finance Minister on ideas for a deeper capital markets union. Klingbeil is aiming for an intensive exchange with Stephan Leithner, the chairman of Deutsche Börse. Leithner emphasizes the need for suitable location factors so that international companies can invest in Frankfurt. Klingbeil is also open to fund-supported models for retirement provision and emphasizes the importance of an open debate on these topics.

The importance of the Capital Markets Union

The Capital Markets Union, currently referred to as the “savings and investment union” (SIU), is seen as crucial to mobilizing investment in Europe. The need for structural reforms, reductions in bureaucracy and tax incentives is highlighted as an important measure. The lack of equity financing represents a structural competitive disadvantage that urgently needs to be addressed. Positive developments such as the EU Listing Act and the European Long-Term Investment Fund are advances that are intended to support the Capital Markets Union, according to the Federal Ministry of Finance.

A panel discussion that recently took place at the Federal Ministry of Finance, moderated by Melinda Crane, discussed the challenges and opportunities of the Capital Markets Union as well as the role of fintechs and digital currencies. The Minister Dr. Jörg Kukies pointed out the urgency of a common European approach to improve competitiveness and strengthen Europe's financial center. The importance of transparency and trust in capital markets to attract a broader investor base was also highlighted.

It is also important to promote start-ups and scale-ups in Germany in order to promote innovation. The fragmentation of the European capital markets is identified as a problem that must be addressed through harmonized regulations. During the discussion, reference was made to the importance of financial education in order to strengthen trust in the capital markets and enable broader participation. The call for cooperation and the implementation of concrete measures to strengthen the Capital Markets Union rounds off the debate bundesfinanzministerium.de reported.