Agefi Luxembourg - avril 2025

AGEFI Luxembourg 8 Avril 2025 Economie / Fiscalité L L.AA.RR. leGrand-Duc et la Grande-Duchesse, accompa- gnées duVice-Premierminis- tre,ministre desAffaires étrangères et duCommerce extérieur, Xavier Bettel, ont retrouvé, le 9 avril, le Conseil de l’Europe à Strasbourg. Alors que la 8 e présidence luxembour- geoise du Comité des Ministres est sur le point de s’achever (novembre 2024 à mai 2025), le chef de l’État s’est adressé devant l’assemblée parlementaire pour défendre le rôle vital du Conseil et, plus globale- ment, des institutions européennes et in- ternationales pour assurer la paix et les droits de l’homme face àun contextepar- ticulièrement difficile. « Les désastres de la première moitié du 20 e siècle nous ont conduits à la création desstructuresinternationalesdesNations unies, du Conseil de l’Europe et de l’Union européenne afin de préserver la paix et la sécurité internationale, à pro- mouvoirleprogrèssocialetàdéfendreles droits de l’homme. […] Ensemble, avec des institutions telles que le Conseil de l’Europe,nousréussironsàsurmonterles obstacles. Sans renier ni perdre nos va- leurs qui font notre force », a déclaré S.A.R. leGrand-Duc. De son côté, le ministre Xavier Bettel est revenusur les événements et conférences organisés sous la présidence luxembour- geoise, et a souligné « l’engagement sans faille du Luxembourg envers le Conseil de l’Europe », illustré par la participation du chef de l’État et de nombreux mem- bresduGouvernementàdesévénements de haut niveau à Strasbourg. Le ministre Bettel s’est également félicité de l’adoption sous la présidence luxem- bourgeoisede laConventionpour lapro- tection de la profession d’avocat, qui sera ouverte à la signature le 13 mai prochain à Luxembourg, à l’occasion de la pro- chaine session du Comité des Ministres. L’allocution a également permis de reve- nir sur les sujets d’actualité politique, no- tamment l’agression russe contre l’Ukraine, la situation dans la région des Balkans, les derniers développements en Géorgie et enTurquie, ainsi que la remise en cause des relations de partenariat transatlantiques, avec l’imposition de droits de douane américains. Le ministre a évoqué la nécessité absolue derechercheretdepoursuivreledialogue à tous les niveaux, soulignant le rôle du Conseil de l’Europe à cet égard. À l’issue de son discours, le Vice-Premier ministre a assisté à l’allocution de S.A.R. le Grand- Ducdevantl’Assembléeparlementairedu Conseil de l’Europe (APCE). Auprogramme figurait également le lan- cement du film documentaire Papa-Tata , lauréat du prix « Droits humains en ac- tions »duConseil de l’Europe, auquel as- sistait S.A.R. le Grand-Duc. En parallèle, S.A.R.laGrande-Duchesseamisenavant ses combats en prenant activement part à l’initiativeWomen@PACEportantsur«la violencestructurellefondéesurlegenre». Le couple grand-ducal et Xavier Bettel se sont aussi entretenus au sujet de l’État de droit et des grands sujets d’actualité avec le président de l’Assemblée parlemen- taire, Theodoros Rousopoulos, le direc- teur général du Conseil de l’Europe, Alain Berset, et le président de la Région Grand Est, Franck Leroy. Le séjour à Strasbourg s’est achevé au Palais de laMusique et des Congrès par un concert de l’Orchestre Philharmo- nique du Luxembourg, en présence du ministre Éric Thill. Sources :MaisonduGrand-Duc, MinistèredesAffairesétrangèreseteuropéennes LL.AA.RR . le Grand-Duc et la Grande-Duchesse au Conseil de l’Europe à Strasbourg : «Ensemble, nous réussirons à surmonter les obstacles » ©MaisonduGrand-Duc/Pancake O n 19March 2025, the EUCommis- sionpublished a communication on its strategy (Strategy) for a Sa- vings and InvestmentsUnion (SIU). This initiative aims to enhance financial oppor- tunities for people andbusinesses, while supporting the EU’s economic growth and competitiveness. TheStrategyidentifiesfourkeypolicy areas: (i) citizens and savings, (ii) in- vestmentsandfinancing,(iii)inte- grationandscale,and(iv)efficient supervision in the single market. Inaddition,itcontainsasectionon theintegrationandcompetitiveness of the EUbanking sector. The EU Commission will publish amid-termreviewof the SIUbyQ2 2027 to assess the progress made and in- tegrate feedback fromvarious stakeholders. I.What is included in the Strategy? Encouraging citizens to participate in capital markets The EUCommissionproposes severalmeasures in- centivise retail savers to invest a greater portion of their savings in capital market instruments. To this end, the EUCommission plans to introduce a European blueprint for savings and investment products based on existing best practices, accompa- nied by a recommendation on their tax treatment. One idea it puts forward is for a type of mixed ac- count into which money, securities, and insurance policies could be deposited. It also aims to facilitate an agreement between the EU Parliament and the Council of theEUon theRetail Investment Strategy, with the option to withdraw the proposal in the event of excessive red tape. To create amore invest- ment-savvyculture, afinancial literacystrategy is set to be adopted. Inpartnershipwith the European In- vestment Bank Group and the European Stability Mechanism, the EU Commission will also explore newways to improve retail investor access to finan- cial products alignedwith EUpriorities. The supplementary pension sector is another area of focus. TheEUCommissionwill issue recommen- dations on best practices for auto-enrolment schemes, pension tracking systems, and pension dashboards. Inaddition, a reviewof the existingEU frameworks for occupational andpersonal pension products is planned, with the aimof boosting sup- plementary pension participation across Member States. Experience has shown that countries with a strong pension funds sector have more dynamic and robust financial markets. Investments and financing In line with the new objective of “simplification”, as outlined in the Omnibus I Directive, the EU Commission will take measures to in- centivise long-termequity investments from insurers and institutional in- vestors. This includes updating the Solvency IIDelegatedAct to clarify the eligibility criteria for favourable pru- dential treatment. A revision of the Eu- VECA Regulation (1) is scheduled for the third quarter of 2026 to further support venture capital investments. Efforts to reduce cross-border barriers will include tackling dis- parities in national tax procedures, simplifying EU listing rules, and reducing burdens on increasing liquidity for publicly listed com- panies. The EU Commission also plans to explore mechanisms for investor exits fromprivate compa- nies, potentially through intermit- tent trading of private shares. New proposals on securitisation are expected to sim- plify due diligence and transparency require- ments, while adjusting prudential rules for banks and insurers. Enhancing integration and scale The Strategy emphasises that EU capital markets are currently facing challenges due to regulatory, supervisory and political fragmentation. To address this, the EU Commission will set up a dedicated channel for all market participants to re- port on barriers encountered within the single market and enhance enforcement efforts to accel- erate their removal. In addition, the EU Commis- sionwill propose legislation to remove barriers to cross-border activity, modernise the legislative framework and improve execution quality and price formation on EU trading venues. Consider- ation is also being given to replacing certain direc- tives with directly applicable regulations to accelerate harmonisation. Additional proposals will aim to improve the dis- tribution of EU-authorised investment funds and simplify and reduce operational costs for firms op- erating across borders.Areviewof the Shareholder Rights Directive is also expected. Towards harmonised supervision Uniform supervision in the single market is an- other priority for the SIU, as the current discrepan- cies in supervisory standards across Member States contribute to higher compliance costs and fewer choices for consumers. To achieve this, the EU Commission intends to encourage both Euro- pean supervisory authorities and national regula- tors tomake full use of existing tools and adopt the simplificationmeasures outlined in the recent Sim- plification Communication. In addition, it will also propose new initiatives to strengthen supervisory convergence tools andpur- sue amore centralisedoversight of capitalmarkets. Amore competitive banking sector The Strategy aims to further integrate and enhance the competitiveness of the EU banking sector. The EUCommission intends to support co-legislators in resolving shortcomings around crisis management and deposit insurance, while continuing to drive forward the EU banking union. A comprehensive report on the state of the banking sector, is planned for release in 2026. Finally, the EUCommissionwill continuemonitoringdevelopments inbankingmar- kets to ensure a swift response to any risk to finan- cial stability, the internalmarket, or the EUbanking sector’s competitiveness. II.What to think about the Strategy? At its core, the Strategy takes a pragmatic approach. Itmakesacommendablemovetowardsinternational bestpractices-drawinginspirationfromtheSwedish, US, and Japanesemodels – by aiming to boost retail investment through tax-incentivised products, and pension funds through the use of auto-enrolment (similar to the systems used in the Netherlands and someNordic countries). This approachmarks apos- itiveshiftintheEUCommission’sstrategyregarding financial services. Tobewelcomedalso is the shift fromdisintermedia- tion and an exclusive focus onmarket-basedfinance toamorebalancedapproach that aims to strengthen everycomponentofamultisectoralfinancialsystem. Market-basedfinancemustnotbeachievedattheex- penseofthebankingsector.Thedrivingforceofcap- ital markets should be added to that of banking, not replace it. Europe cannot expect to have an efficient financial sector by bolstering only its weak points; it must also continue working on its strengths. In that sense, it is important that the Strategy put equal em- phasis on reinforcing the banking sector, which rep- resents 70% of the financing of the European economy.At the same time, it is encouraging that the Strategy also aims to permit pension funds and in- surance companies to engage in higher-risk invest- ments, which can yield higher returns. The EU Commission’s emphasis on financial liter- acy is anothermeasure tobe embraced. Such an ed- ucational initiative is crucial for addressing the inherent risks in today’s sophisticated financial markets. In addition, better financial literacy will encourage access to investments that, while riskier, are alsomore promising andare essential to the dy- namismof the European economy. European soci- ety can only benefit from citizens who are more aware of financial realities. Despite the positive elements, the Strategy is not withoutitsareasforconcern,notablytheapproachto supervisioninthesinglemarket.Thecommunication is careful to avoid an overt move toward centralisa- tion anddoes not present it as an aimas such. How- ever, it leaves open the possibility of gradual centralisation over time, without providing specific safeguards. The principle of administrative federal- ism is enshrined in the Treaties. In this context, a ro- tating presidency among national competent supervisory authorities - akin to the model used by the Council of the EU - could serve as a more bal- anced alternative than centralisation at EU level and adoublelayerofnationalandEuropeansupervision, which will prove to be heavy, burdensome, expen- sive, slow and inefficient. Furthermore, the Strategy neither acknowledges thepotential conflicts of inter- est thatmayarise fromthe combinationof law-mak- ing and supervisory functions within the same authorities, nor questions the current geographical concentrationoftheEU’ssupervisoryauthoritiesbe- tweenGermany and France. Another area of concern lies in the Strategy’s ap- proach to innovation within the EU’s financial sys- tem. The EU Commission sets ambitious goals, yet falls short of recommending practical solutions, par- ticularlyinfinancingresearchanddevelopment,star- tups, andprivate equity. Regardingthelistingofcompaniesonstockmarkets, theEUCommission failed topropose the removal of optional derogations and exemptions that under- mine the level playing field. Broader harmonisation of thematerial conditions for listingwould also be a welcomemove. Conclusion: encouraging but not enough To conclude, the EU Commission’s Strategy largely puts forward ideas that are to be embraced. Overall, it is in line with the suggestions I have developed in theessay“TheFiveLaboursofEurope,aEuropethat willMakeUsGrow”, published byConcurrences in April 2024 (French edition) and June 2024 (English edition),particularlyinthesectiondedicatedtofinan- cialservices,“ASafer,MoreEfficient,andMoreCom- plete European Financial System” (pp. 83-97). However, the Strategy appears to rest on several somewhat idealistic assumptions: i) that there are abundant European savings, ii) that these are com- bined with insufficient investment in the European economyand iii) that reforms in thefinancial system will automatically solve this imbalance. In reality, whilesuchreformsarecertainlynecessary,theyalone arenotenoughtobridgethesavings-investmentgap. The financial systemis just a channel throughwhich capital flows. Without sincere effort to clear its path through the singlemarket by removing barriers and reducing red tape, companies both within and out- side thefinancial sectorwill remain too small andre- stricted to purely domestic markets in Europe and will therefore be unable to growand bring growth. Philippe-Emmanuel PARTSCH (2)(3) Partner in EUFinancial and Competition Law,Arendt &Medernach Professor of EUBanking and Financial Law, University of Liège Lecturer in EUBanking and Financial Law, University of Paris II PanthéonAssas 1) The European Venture Capital Fund (EuVECA) Regulation is a voluntaryEUfundregulatoryregimethatintroducesaninternalmar- keting passport for venture capital fundmanagers. 2) The views expressed in this paper are those of the author and not of the institutions of which he belongs. 3) TheAuthor warmly thanks Georgios Georgopoulos,Associate in the EU Financial and Competition Law team of Arendt, for his assistance in the drafting of this paper. EU Commission strategy for a Savings and Investments Union: Ambition, balance and unanswered questions