Javier Hernani (CEO of Bolsas y Mercados Españoles)| In Spain alone, over the last decade, markets have funneled €217,000 million worth of financing to companies in the form of capital, a clear indication of their importance. If you add the contribution of fixed income securities, which includes government debt, the figure comes to 1.5 trillion euros, which is channeled through the markets managed by BME. This equates to many business projects implemented, many growth plans implemented and many impetus for growth and well-being of society. Despite these figures, there have been signs of a loss of competitiveness in Spanish financial markets in recent years. In order to analyze the situation and, above all, to propose concrete measures to improve it, BME has prepared a white paper to increase the competitiveness of the capital markets in Spain. The study, based on the opinion of around thirty leading Spanish financial institutions and authorities, concludes that there are a number of competitive disadvantages that are harming Spain compared to the main international markets.
“In Spain, markets have channeled 217,000 million euros in financing to companies over the last decade. If you add the contribution of fixed-interest securities – which also includes national debt – the figure comes to 1.5 trillion euros. We have all the ingredients: a first-class financial industry, market infrastructures at the highest international level… It’s just a matter of clearing the way.”
The current tax and regulatory system in Spain puts the capital market at a disadvantage compared to other countries. This is particularly relevant against the background of strong global competition. In addition, a size deficit was identified, which is also of great importance because financial markets are the greatest allies in promoting the growth of listed companies. In Spain there are leading companies that are world leaders in their sectors and there is no doubt that the listing has been a stimulus for this successful path.
How to improve. Even more important than recognizing the situation is suggesting solutions. Our White Paper has a constructive spirit; It is intended to be a call for reflection and action based on the belief that increasing the competitiveness of our financial markets must be a priority for everyone because there is much to be gained as a country by doing so. We therefore propose 56 concrete measures to improve the competitiveness of Spanish financial markets and bring them to the level and influence they deserve given the size of the Spanish economy. Most of the proposed measures would be quick and easy to implement and would have a significant impact. In many cases it is simply a matter of adapting Spain's regulatory and tax framework to those of neighboring countries.
“In many cases it is simply a matter of aligning Spain’s regulatory and tax framework with those of neighboring countries. The current situation in our country puts us at a disadvantage.”
The 56 measures that we propose in the White Paper are divided into four main blocks: encouraging companies to list on the Spanish stock exchanges, with measures such as simplifying and speeding up the listing process or maintaining the application of tax incentives within the framework of the start-up Law companies start trading on multilateral trading systems such as BME Growth; Promote the channeling of investments to companies through measures such as the development of formulas to encourage private investors to participate in the Spanish stock markets or to make investments in Spanish listed SMEs more flexible and encourage them to do so through collective investment instruments; Promoting the circulation of savings and investments in national markets and preventing their relocation through measures such as the abolition of the financial transaction tax in Spain or the development of a communication strategy to achieve a real increase in the volume of bond issues by large Spanish companies; and finally, promoting the effective development of new regulated investment and financing ecosystems, with measures such as accelerating the creation of structures to use the simplified MiCA regime or the introduction of an incentive tax system for digital asset activities.
These are just some of the many proposals in the White Paper, which can be viewed in full on the BME website. They all have one thing in common: they aim to eliminate all the barriers and competitive disadvantages that the capital markets in Spain currently face. This is necessary and the time is ripe because global competition is increasing. We have all the ingredients: a world-class financial industry, market infrastructures that meet the highest international standards in terms of digitalization, security, transparency and liquidity, with the best spreads on Spanish securities and proven experience. It's not about building everything from the ground up, it's just about clearing the way and making things easier.
Comments are closed.