Extracts from the press conference by Valdis Dombrovskis and Jyrki Katainen, Vice-Presidents of the EC, on Sustainable Finance, CMU and Motor Insurance Directive

Type: Special compilation   Référence: I155750   Durée:  Lieu: Brussels - EC/Berlaymont
On Thursday the 24th of May, the Commission has presented a series of measures stemming from the Capital Markets Union and the Banking Union, leading to a stronger and more resilient Economic and Monetary Union. First, the Commission is today proposing risk-reduction rules that will allow market-led solutions for the development of sovereign bond-backed securities (SBBS). SBBS would contribute to weakening the link between banks and their home countries. SBBS would, by design, not involve mutualisation of risks and losses among euro area Member States. Instead, these securities would be issued by private institutions as claims on a portfolio of euro-area government bonds. The market-driven development of SBBS will help investors diversify their sovereign exposures and promote financial integration.

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HEURE DESCRIPTION DUREE
00:00:00 Title 00:00:05
00:00:05 Exterior view of the Berlaymont building 00:00:05
00:00:10 Arrival of the speakers in the press room 00:00:07
00:00:17 Soundbite (In ENGLISH) by Valdis Dombrovskis, Vice-President of the EC in charge of the Euro, Social Dialogue, Financial Stability, Financial Services and Capital Markets Union saying that: Let me start with our proposal to enable sovereign bond backed securities, or SBBS. This is a risk reduction measure. SBBS are a low-risk financial product that would be backed by a bundle of the 19 euro-area government bonds. If the market for SBBS takes off, it could help the private sector better diversify risk across borders. Therefore, SBBS would further weaken the bank-sovereign loop, which was at the heart of the crisis. To issue this product, private market actors, such as banks, would buy euro-area Member States' bonds on the market, package them, and resell them as SBBS. What our proposal does is to enable them to carry out this process and issue these securities - should they want to. 00:00:55
00:01:12 Cutaway of the audience 00:00:05
00:01:17 Soundbite (In ENGLISH) by Valdis Dombrovski saying that: The second proposal is about helping small and medium enterprises to list and issue stocks and bonds on public markets. This is associated with additional growth and job creation. Today, out of 20 million SMEs in Europe, only about 3,000 are listed on stock-exchanges. We have already revised some EU rules to reduce the regulatory burden on SMEs and help them raise capital, for example with new Regulations on prospectuses and venture capital. But EU laws still do not sufficiently differentiate between larger and smaller companies. With today’s initiative we are simplifying rules for SMEs listed on SME Growth Markets, which are a specific category of trading venue dedicated to small issuers. At the same time, we are safeguarding a high level of investor protection and market integrity. 00:00:58
00:02:15 Cutaway of the speakers 00:00:04
00:02:19 Soundbite (In ENGLISH) by Valdis Dombrovski saying that: First and foremost, we want to establish an EU-wide classification-system for sustainable activities, to provide common definitions for what is green and what is not. This is a ground breaking step. For the first time, we will assess sector by sector which economic activities are good for the climate and the environment. And we will lay the foundations for a Single Market for sustainable investment. 00:00:25
00:02:44 Cutaway of the speakers 00:00:05
00:02:49 Soundbite (In ENGLISH) by Valdis Dombrovski saying that: We propose to mandate a group of experts to draw up guidelines to assess the sustainability of economic activities, based on scientific evidence. They would then be turned into a binding classification, with specific criteria for each economic sector and sub sector. For example, within the building sector, a housing project could be qualified as green based on its energy efficiency, or based on the share of recycled building material. 00:00:28
00:03:16 General view of the speakers 00:00:06
00:03:22 Soundbite (In ENGLISH) by Valdis Dombrovski saying that: Our second proposal concerns those who manage investments on behalf of others, such as asset managers, insurance companies or pension funds. They already have a duty to act in the best interest of their clients. By considering sustainability, these managers can more fully assess long-term risks and opportunities, and not only short-term financial returns. That is why we will clarify that their duty towards their clients includes making sustainability risks a part of their decision-making process. 00:00:33
00:03:55 Cutaway of the audience 00:00:04
00:04:00 Soundbite (In ENGLISH) by Valdis Dombrovski saying that: There are two more proposals to complement this: First, we will propose a new category of benchmarks, comprising low-carbon and positive carbon impact benchmarks. This proposal also includes an obligation on benchmark providers to disclose information about their sustainable benchmarks. And second, we will update the suitability test for retail investors. This means that when potential investors have their first conversations with an investment professional, they will be asked about their sustainability preferences. This should make it easier for people to invest in green assets, and boost their inclusion in investment portfolios. Investing in green assets should be easy. 00:00:40
00:04:40 Cutaway o a cameraman 00:00:04
00:04:44 Soundbite (In ENGLISH) by Jyrki Katainen, Vice-President of the EC in charge of Jobs, Growth, Investment and Competitiveness saying that: Today's proposals will increase transparency of sustainable finance and the investment opportunities it offers, so that investors have reliable information available to enable the transition to a low-carbon, resource-efficient and circular economy. 00:00:18
00:05:02 Cutaway of the audience 00:00:04
00:05:06 Soundbite (In ENGLISH) by Jyrki Katainen saying that: With our proposal, we want to give investors who want to invest in low carbon strategies an appropriate tool to enable them to compare the performance of their investment. We will do this by establishing a new category of benchmarks, consisting of two specific types of benchmarks. We would then specify and establish minimum standards for the methodology of these benchmarks, in a Commission delegated act. 00:00:29
00:05:35 Cutaway of the audience 00:00:04
00:05:39 Soundbite (In ENGLISH) by Jyrki Katainen saying that: Our fourth proposal is to update the suitability test for retail investors, to include sustainability considerations into the advice that investment firms and insurance distributors offer to individual clients. Currently, firms do not always assess the non-financial preferences of their clients, such as those relating to the environmental and social impact of investments. Our proposal will clarify the existing obligation to act in the best interest of the client, and investment advisers and portfolio managers will have to offer investment products that meet client's investment objectives. 00:00:44
00:06:24 Cutaway 00:00:04
00:06:28 Soundbite (In ENGLISH) by Jyrki Katainen saying that:(On Motor Insurance Directive) It has three objectives: First, to better protect victims of motor vehicle accidents. It does this by putting in place a mechanism to ensure that victims are reimbursed even if the motor insurer is insolvent. In addition, it harmonizes minimum amounts of motor insurance cover in all member States. 00:00:25
00:06:53 Cutaway of the speakers 00:00:04
00:06:57 Soundbite (In ENGLISH) by Jyrki Katainen saying that: The second objective is to improve the rights of motor insurance policyholders when they move to another Member State, by obliging motor insurers to treat their claims history in the same way as they would do with a national resident, with no discrimination. This will help mobile policyholders get the same insurance premiums as non-mobile ones. And third, to help combat uninsured driving. 00:00:28
00:07:24 Speakers leaving the press room 00:00:05
00:07:29 End 00:00:00
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