New ‘Finance Europe' label aims to channel retail savings

French Economy Minister Eric Lombard. — Bloomberg
PARIS: A group of European countries is teaming up on a new initiative to help funnel more savings into the continent's economy, as the region tries to accelerate progress on integrating and deepening its capital markets.
Officials including French Economy Minister Eric Lombard and his Spanish counterpart Carlos Cuerpo were scheduled to sign an agreement in Paris yesterday for a label called 'Finance Europe' that would apply to certain products targeting retail investors, according to a statement by the French Economy Ministry.
The initiative is part of an effort to deepen the region's financial markets, as the European Union tries to break a deadlock in its decade-old plan for a capital markets union.
With room for fiscal spending limited in much of Europe, tapping savers is key to help fund the economy and boost the region's competitiveness.
France, Spain, Portugal, Germany, Luxembourg, the Netherlands and Estonia are the first countries to join the initiative, which comes against the backdrop of a global trade war that has already fueled capital reallocations.
To qualify for the 'Finance Europe' label, investment products must have at least 70% of assets in the European Economic Area, primarily in equities. They must also include an incentive for long-term holding, such as a lock-up period.
Each country will decide separately on potential tax incentives for savings products under the new label, which will be distributed by banks, asset managers and insurance companies.
Thomas Richter, the head of Germany's asset management lobby BVI, cautioned that products sold under the new label may not be suitable for all retail investors.
He also expressed doubt that governments will commit to meaningful tax incentives to promote the products.
'Bringing more people to the capital markets and financing the European economy is a worthy goal,' he wrote by email.
'However, this label cannot be aimed at inexperienced savers, given that it permits investments with low liquidity, among other things.
'It is also unsuitable for retirement provision, as the narrower investment universe leads to lower return opportunities in the long term.' — Bloomberg

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

New Straits Times

an hour ago

• New Straits Times

EU bars Chinese firms from major state medical equipment contracts

BRUSSELS: The European Union on Friday banned Chinese firms from government medical device purchases worth more than five million euros (US$5.8 million) in retaliation for limits Beijing places on access to its own market. The latest salvo in trade tensions between the 27-nation bloc and China covers a wide range of healthcare supplies, from surgical masks to X-ray machines, that represent a market worth 150 billion euros in the EU. "Our aim with these measures is to level the playing field for EU businesses," the bloc's trade commissioner Maros Sefcovic said. "We remain committed to dialogue with China to resolve these issues." In response, China accused the EU of "double standards". "The EU has always boasted that it is the most open market in the world, but in reality, it has gradually moved towards protectionism", foreign ministry spokesman Guo Jiakun said at a regular press briefing. "Under the guise of fair competition (the EU) actually carries out unfair competition, which is a typical case of double standards." The European Commission said in a statement the move was in "response to China's longstanding exclusion of EU-made medical devices from Chinese government contracts." Brussels said just under 90 per cent of public procurement contracts for medical devices in China "were subject to exclusionary and discriminatory measures" against EU firms. In addition to barring Chinese firms from major state purchases, "inputs from China for successful bids" would also be limited to 50 per cent, it said. Over the last three years, Brussels and Beijing have come into conflict in a number of economic sectors, including electric cars, the rail industry, solar panels and wind turbines. The decision on medical devices comes at a time of heightened trade tensions with President Donald Trump's United States, which has imposed customs surcharges on imports from all over the world, including Europe. The EU has decided to take a tougher stance on trade in recent years, adopting a vast arsenal of legislation to better defend its businesses against unfair competition. In April 2024, the commission opened an investigation into Chinese public contracts for medical devices, the first under a new mechanism introduced by the EU in 2022 to obtain better access to overseas state purchases. China, on the other hand, accuses Europe of protectionism. After a year of negotiations, the commission, which manages trade policy on behalf of the 27 member states, said it had failed to make any progress with China. "The measure seeks to incentivise China to cease its discrimination against EU firms and EU-made medical devices and treat EU companies with the same openness as the EU does with Chinese companies and products," Brussels said.

Malaysiakini

3 hours ago

• Malaysiakini

Nine EU countries urge review on trade linked to Israeli settlements

Nine European Union member states have called on the European Commission to examine whether trade involving goods and services produced in Israeli settlements in the occupied Palestinian territory is consistent with international law. According to Palestine News and Info Agency (Wafa) the joint appeal was announced by Belgian Foreign Minister Maxime Prévot in a post on X. The countries backing the initiative are Belgium, Finland, Ireland, Luxembourg, Poland, Portugal, Slovenia, Spain, and Sweden.

The Sun

3 hours ago

• The Sun

Euro 2028 among events to benefit as UK govt pledges $1.2 billion investment in sport

THE UK government has pledged to spend more than 900 million pounds ($1.21 billion) to improve grassroots sporting infrastructure and support major events in the country such as Euro 2028, the Department for Culture, Media and Sport said. More than 500 million pounds would be used to support the delivery of world-class events, including next year's European athletics championships and the start of the men's and women's races of the Tour de France in 2027. 'This major backing for world-class events will drive economic growth across the country, delivering on our Plan for Change,' Culture Secretary Lisa Nandy said in a statement on Thursday. Affirming a commitment made by Nandy's predecessor Lucy Frazer in 2023, the government will also invest at least 400 million pounds in communities around the country to build new or upgrade existing grassroots sports facilities.