NEWS Release - Vienna Initiative: New Working Group on Capital Markets Union for CESEE Region - March 6, 2017
The Vienna Initiative has agreed to establish a Working Group on Capital Markets Union. This follows the European Union’s push to strengthen capital markets which will have a major impact on financing of investment and sustaining growth in the Central, Eastern and Southeastern Europe region (CESEE).
“Strengthening and diversifying sources of finance is crucial in the region today, as the regional catching up process advances and a new model for growth emerges”, commented Werner Hoyer, the President of the European Investment Bank (EIB), which is hosting this year’s Vienna Initiative 2 Full Forum at its headquarters in Luxembourg.
All members of the Forum expressed their strong commitment to the work of the new working group, which will report by the end of 2017. The working group will help to promote the diversification of investment finance in the region, mobilize the Vienna Initiative network to analyze structural obstacles and regulatory gaps impeding capital market development in the CESEE region and identify solutions at the national and regional levels.
The Vienna Initiative was founded at the height of the global financial crisis of 2008/09 as a private-public sector platform to secure adequate capital and liquidity support by Western banking groups for their affiliates in CESEE. The initiative was relaunched as “Vienna 2” in January 2012 in response to renewed risks for the region from the Eurozone crisis. Its focus is now on fostering home and host authority coordination in support of stable cross-border banking.
The Vienna Initiative Forum also looked into investment dynamics, priorities and constraints in the region and discussed how new instruments provided by the international financial institutions, focusing on environment, infrastructure, innovation and SMEs can supplement existing funding models. The Vienna Initiative will study further the design of financial instruments to support investment in the CESEE region and beyond.
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