Two months of intensive negotiations under the Luxembourg Presidency has resulted in Member States reaching agreement on the Securitisation package at the meeting of the Committee of Permanent Representatives on Wednesday 2 December 2015.
On 30 September 2015, the European Commission had originally adopted two legislative proposals, the first regulation bringing together in one legal act existing rules on securitisation so as to guarantee coherence and convergence between sectors and definining the criteria qualifying a new category of simple, transparent and standardised (STS) securitisations; the other amending the capital requirements regulation (CRR) to adjust the regulatory framework allowing for a more risk-sensitive approach.
The development of a STS securitisation market represents the first building block of the Capital Markets Union, with Minister of Finance of Luxembourg and President of the ECOFIN Council, Pierre Gramegna, commenting: "The objective is to contribute to the financing of the economy and hence to the creation of jobs and growth."
The negotiating mandate is due to be formalised by the ECOFIN Council on Tuesday 8 December 2015, with talks with the European Parliament expected for 2016.
Photo by Ministry of Finance (Pierre Gramegna)
