By Tommy Reggiori Wilkes
LONDON (Reuters) – Britain and the European Union should flip their “first steps” to rebuild belief right into a “steady walk” as they confront widespread challenges, the president of the Eurogroup of euro zone finance ministers stated on Tuesday.
Addressing representatives of Britain’s monetary business, Paschal Donohoe stated his discussions with UK finance minister Rachel Reeves included pensions system reform and unlocking longer-term financial savings to spice up capital markets, in addition to the euro zone’s drive for an elusive capital markets union.
“Of course, the UK and EU each have to make their own decisions about how to make progress. However, it is really welcome that we have moved onto a new footing in our relationship which allows us to exchange views on these important topics for our citizens and businesses,” he stated.
“More broadly, I strongly welcome the UK Government’s intention to strengthen and deepen relations with the EU,” Donohoe, an Irish authorities minister, instructed an viewers on the medieval Guildhall, house of the Metropolis of London Company.
Britain’s Prime Minister Keir Starmer has sought to reset relations with the EU since coming to energy this summer season, with improved ties on the coronary heart of his efforts to spice up Britain’s financial progress.
Donohoe stated he welcomed the UK-EU Memorandum of Understanding on Monetary Companies, signed final yr, which enabled conferences of the Joint EU-UK Monetary Regulatory Discussion board.
In a speech titled ‘Financing Our Future’, the Eurogroup president stated progress on a euro zone capital markets union was very important.
“At a time of growing dissatisfaction about the role of market-based solutions and at a time of such widespread budget challenges, making further progress on Capital Markets Union is essential,” he stated.
Latest work between member states signalled “a sea change in attitudes and political determination”.
“To play the ‘devil’s advocate’, without a true capital markets union in Europe, I think the green transition as one prime example, is far less likely to happen,” he instructed the viewers in London.
