European Union

The European Securities and Markets Authority on Monday said it sees a need to create a common supervisory culture in the EU and believes that national financial supervisors need to intensify their horizontal, cross-border cooperation. It also acknowledged that it needs to improve its own cooperation with national supervisory bodies.

The eurozone looks increasingly weak. The euro slipped to parity with the dollar last week and a peripheral debt crisis threatens if interest rates rise sharply. With Italian Prime Minister Mario Draghi’s departure announced on Thursday, the stability of the euro is anything but certain.

In a world where new powers, forces and risks are emerging, it is time to reset the EU’s common foreign and defence policy, says Joachim Bitterlich. Chancellor Helmut Kohl’s chief advisor talks to Investment Officer about what a lack of realpolitik brings about. “How do we ensure our economic independence in a world with challenges like China, Russia and Africa? It is about raw materials, trade relations, investments and avoiding dependencies.”

The financial industry often baulked at the tens of billions of euros it pays for EU’s comprehensive regulation framework put in place post 2008 financial crisis. With markets in turmoil over Russia-Ukraine, that tone now is different.

Luxembourg fully supports the European Union’s additional sanctions against Russia over its aggressive move towards Ukraine but supports a cautious approach with the EU’s plans to eject Vladimir Putin’s country from the international payments system Swift. If that happens Russia will in essence be cut off from the world economy.