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Germany open to compromise on EU capital markets union, finance minister says

Published by Global Banking & Finance Review

Posted on May 26, 2026

2 min read

· Last updated: May 26, 2026

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Germany Open to Compromise on EU Capital Markets Union and Supervision

Germany's Stance on EU Capital Markets Union Negotiations

By Maria Martinez

Germany Signals Willingness to Compromise

BERLIN, May 26 (Reuters) - Germany is ready to compromise in negotiations on the European Union's capital markets union, including on the sensitive question of financial supervision, Finance Minister Lars Klingbeil said on Thursday.

Commitment to Advancing the European Project

"I am ready to compromise, I am ready to move as well, because I really want us to advance this important European project," Klingbeil said.

Importance of Capital Markets Union for Europe

He called the project a "game-changer" for Europe's economic sovereignty and said it is essential given geopolitical and geo-economic upheaval.

Upcoming E6 Group Meeting

Finance ministers from the E6 group — Germany, France, Italy, Spain, the Netherlands and Poland — are due to meet in Berlin on Thursday.

Key Issues: Supervision and Centralisation

The issue of supervision is one of the key issues in the negotiations and Germany has traditionally been cautious about centralising financial supervision at EU level, but Klingbeil stressed that Germany was willing to compromise.

Risks of Slow Progress and the Need for Unity

Klingbeil warned that Europe would move too slowly if each country insisted on getting "100%" of what it wants, or if the debate were framed in terms of winners and losers.

"For me, it is about the overall European project winning," Klingbeil said.

(Reporting by Maria Martinez, Editing by Linda Pasquini)

Key Takeaways

  • Germany, traditionally cautious on centralising financial supervision, is now open to compromise to advance the EU’s capital markets union project.
  • The initiative is framed as vital for Europe’s economic sovereignty amid geopolitical shifts, with E6 finance ministers (Germany, France, Italy, Spain, the Netherlands, Poland) actively coordinating.
  • Recent EU-level progress—such as harmonised insolvency rules, market transparency reforms, and support for centralised supervision—provides momentum for deeper capital market integration.

Frequently Asked Questions

What is the EU capital markets union?
The EU capital markets union is a plan to create a single market for capital across EU member states, improving access to funding and boosting investment.
Why is Germany willing to compromise in the negotiations?
Germany is willing to compromise to advance the EU capital markets union, which is seen as essential for Europe's economic sovereignty amid geopolitical changes.
Which countries are involved in the current negotiations?
The E6 group—Germany, France, Italy, Spain, the Netherlands, and Poland—are participating in the discussions in Berlin.
What is the main point of contention in the negotiations?
The supervision of financial activities at the EU level is a sensitive issue, with Germany traditionally cautious about centralising this authority.
How does Germany see the outcome of the capital markets union project?
Germany views the project as a 'game-changer' and prioritizes the success of the overall European project over individual national interests.

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