Ireland sees EU capital markets deal possible by year-end

Traders Union
All News
Financial News
Ireland EU capital markets deal

Highlights

Ireland's Taoiseach Micheál Martin says about 80 percent agreement exists on the EU capital markets union plan, targeting a deal by year-end.
The proposal would move oversight of major financial entities to the Paris-based European Securities and Markets Agency, aiming to unify fragmented EU capital markets.
Despite past opposition, Ireland now supports a compromise including all 27 EU countries, emphasizing improved competitiveness and balancing national interests with centralisation concerns.

Presidency push for capital markets reform

As reported by the Financial Times, Taoiseach Micheál Martin says there is already "about 80 per cent agreement" on the savings and investment union plan and that EU countries can still reach a compromise by year-end. He says Ireland wants to complete the effort by the end of its presidency and has held detailed discussions with German Chancellor Friedrich Merz and French President Emmanuel Macron on possible landing zones.

The initiative, first presented in 2015 as the capital markets union, seeks to integrate the EU's 27 national capital markets more closely. Its central proposal would shift oversight of major financial entities, including large stock exchanges, central counterparties and central securities depositories, to the Paris-based European Securities and Markets Agency.

Brussels argues that more centralised supervision would apply EU rules more evenly and encourage consolidation across a fragmented financial landscape. Martin says the project is necessary if Europe wants to improve competitiveness, which Ireland plans to make a priority during its six-month presidency alongside efforts to deepen the single market and advance energy integration.

Balancing national concerns with EU competitiveness

Ireland has previously opposed centralised supervision because of concerns about losing influence over its large financial sector, and many smaller member states remain wary that an EU-level system could weaken their ability to attract business. Martin, however, says consensus among all 27 countries remains achievable and argues that the initiative should include the whole bloc, not only the largest economies.

He says deeper capital markets are important for European start-ups and expanding companies that often look to the U.S. for venture capital, including in Ireland. Martin also says Dublin will act as an honest broker despite its own financial services interests, while warning that the EU must avoid creating a perception of over-regulation or excessive centralisation as the plan evolves.

Our earlier article on Brexit’s decade-long impact on Britain’s financial sector reviewed how London has remained busy and continued to attract major bank investment, even as the UK has lost ground in parts of international finance. We also noted that weaker productivity trends and tighter credit conditions in the wider economy have kept longer-term competitiveness concerns in focus.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.