The European Union must create a unified regulatory framework to overcome fragmentation in business, tax, debt issuance, and securities laws, according to Norges Bank Investment Management (NBIM), the world’s largest sovereign wealth fund.
In a letter to the European Commission, NBIM warned that European markets have lost ground in business dynamism and investment opportunities for institutional investors over time.
NBIM manages Norway’s Government Pension Fund Global, valued at about $1.9 trillion in 2024, with 71% in equities and 26.6% in fixed income. By the end of 2024, it held roughly €285 billion ($325 billion) in securities issued by EU member states and European companies.
The fund urged the EU to unify capital markets supervision under a single regulator to reduce legal uncertainty, operational complexity, and inconsistent rules that currently hamper market efficiency.
The letter is part of an EU consultation on establishing a Savings and Investments Union to streamline financial systems and advance the long-discussed Capital Markets Union. NBIM also highlighted the need to harmonize securities, corporate, insolvency, and tax laws, and to standardize debt issuance processes across Europe.
“European capital markets can become more dynamic and efficient, better supporting economic growth by increasing productive investment opportunities and demand for high-yield investments,” NBIM said.
Investor sentiment toward European markets has improved recently due to political turmoil in the U.S. and expectations of regulatory reform and higher fiscal spending in the EU. Blair Jacobson, co-president of private equity firm Ares Management, noted that Europe is taking control of its future, attracting more investment interest than before.
Read more:
