French and German central bank chiefs call for speeding up EU capital markets union


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PARIS (Reuters) – The war in Ukraine, inflation and the energy crisis make it more important than ever to pursue a capital markets union to finance the green and digital transitions, bank governors said on Monday. French and German power stations.

In a column co-written by the newspapers Les Echos and Handelsblatt, François Villeroy de Galhau and Joachim Nagel sought to show unity at a time of strained relations between Paris and Berlin.

“Europe is at the heart of the crisis: Russia’s war against Ukraine, the energy crisis, inflation. We write together today with one conviction: our unity is becoming more difficult, but more essential”, said the bosses of the Banque de France and the Bundesbank. .

“And what applies to Europe as a whole applies first and foremost to Franco-German friendship: to divide us would be to condemn us.

France and Germany were at loggerheads last month and postponed a summit to try to resolve their differences.

Both said it was vital that the 2015 Capital Markets Union (CMU) initiative launched by the European Union should advance financial stability by fostering geographical diversification of funding sources and by strengthening the risk sharing with the private sector through the development of equity financing.

“We need to accelerate the energy transition more than ever, and therefore we need the financial resources provided by a green CMU,” the two partners said, adding that it was imperative to make the bloc more attractive for domestic and foreign investors. .

“Completing the Capital Markets Union is certainly a long-term task. To make it a success, it is important to set the right course now,” they said.

(Reporting by John Irish. Editing by Jane Merriman)