TOP STORY
🇪🇺 European Union • Brussels wants to centralize its financial supervision
The European Commission is preparing a major overhaul of the rules governing the EU's financial markets. The aim is to stimulate private investment to finance the bloc's priorities in the face of competition from the United States and China, at a time when national budgets remain under pressure. The project, which has been presented behind closed doors to member states and the European Parliament, is expected to be unveiled in December and will amend around ten existing pieces of legislation, from MiFID to MiCA, including directives on investment funds and clearing houses.
At the heart of the reform is a transfer of powers to the European Securities and Markets Authority (ESMA), based in Paris. The institution would see its role significantly strengthened, directly supervising major cross-border stock exchanges, clearing houses, central securities depositories, and all crypto-asset service providers. The Commission wants to give ESMA a new independent executive board and revise its funding model to reduce dependence on national authorities.
But this centralization is already causing tension. Several small states, including Luxembourg and Ireland, fear that their financial centers will lose their appeal to Paris. In 2024, a European summit on the subject ended in deadlock, with these countries opposing a French initiative to unify supervision. Germany, which has long opposed any recentralization, is leaving room for doubt: Chancellor Friedrich Merz and his Finance Minister Lars Klingbeil recently expressed their support for the idea of a single European stock exchange, while rejecting joint supervision of the crypto sector.
The text, referred to internally as the “markets package,” promises to be one of the most ambitious financial reforms since the 2008 crisis. It could revive the long-standing project of a true single capital market, the cornerstone of a European Union capable of mobilizing its savings to finance its economic and technological transition. The challenge now is to convince reluctant capitals to give up some of their financial sovereignty. Politico
IN SHORT
🇮🇱 Israel - 🇵🇸 Palestine • An unprecedented wave of violence hits the West Bank: Israeli settler militias, sometimes backed by soldiers, attack Palestinian communities, causing deaths, injuries, burned trees, destroyed cars, and slaughtered animals. The olive harvest season has been particularly affected, with numerous incidents of harassment, arrests, and destruction, causing great concern among local populations.
🇵🇸 Palestine • At least 93 Gazans have been killed by the Israeli army and 337 wounded since the ceasefire was established on October 10 (Gaza Ministry of Health).
🇩🇪 Germany • Politico has revealed a €377 billion rearmament plan to transform the Bundeswehr into a pillar of European defense. Berlin is planning around 320 new armament projects, including Puma armored vehicles, IRIS-T air defense systems, and military satellites. German companies, including Rheinmetall and Diehl Defense, are heavily favored, although certain strategic elements (fighter jets, deep strikes) remain within the purview of the American industry.
🇸🇪 Sweden - 🇺🇦 Ukraine • Saab has announced plans to open an assembly plant in Ukraine for Gripen fighter jets, following a potential agreement for Kiev to purchase 100 to 150 aircraft. This project would double the Swedish manufacturer's production requirements. Assembly, testing, and possibly some manufacturing could be located in Ukraine, although financing and logistics, including the involvement of frozen Russian assets, remain to be finalized.
🇦🇷 Argentina - Javier Milei's La Libertad Avanza party won the midterm legislative elections by a large margin with 40.7% of the vote, almost tripling its parliamentary base but falling short of an absolute majority. Voter turnout was low, at 67.9%. This success allows the president, described as an anarcho-capitalist, to strengthen his ability to reform a fragile economy, while the uncertainty surrounding the election had increased pressure on the Argentine currency.
🇨🇲 Cameroon • Paul Biya, 92, was re-elected for an eighth term with 53.66% of the vote, according to official results announced by the Constitutional Council. His main rival, Issa Tchiroma Bakary, who came second with 35.19%, denounced the election as a “masquerade.” Protests following the announcement of the results were suppressed, causing several deaths in Douala and Garoua. Voter turnout reached 46.31%.
DO YOU LIKE THIS NEWSLETTER ?
Share it with your friends and contacts !
You currently have {{rp_num_referrals}} referrals.
