EU Competitiveness Compass: Insurers call for better investment conditions and fewer reporting requirements
In the context of the EU Competition Compass, GDV is in favour of targeted steps to realise the Savings and Investment Union and to reduce reporting obligations.
The German Insurance Association (GDV) considers the Competitiveness Compass presented by the Commission to be an important programme for strengthening international competitiveness. As part of this programme, the GDV is calling for tangible steps to advance the Savings and Investments Union and reduce reporting requirements.
“The EU is home to leading insurers. In order to maintain this top position, we need more attractive investment conditions and fewer reporting requirements,” said GDV Chief Executive Officer, Jörg Asmussen.
Stronger creditor rights improve the investment environment
Asmussen emphasised that insurers, as major investors, contribute significantly to the EU's competitiveness. “However, the 27 different national insolvency rules are a labyrinth for investors.” Creditor rights should therefore be strengthened and obstacles to cross-border investments removed. The improvements should not be aimed solely at start-ups but should be applicable to all companies and investment projects.
Initial details on the Savings and Investments Union are due to be presented this year. Insurers are calling for tangible measures to follow. “We need stronger powers for insolvency administrators and uniform creditor rights in the EU,” said Asmussen. This is the only way to create a reliable investment framework.
Making reporting requirements more efficient
The Competitiveness Compass also addresses the Omnibus Simplification Package expected at the end of February, which is intended to consolidate sustainability reporting. The association criticises the fact that the growing complexity reduces the informative value of the reports for investors.
“Reporting requirements should focus on the essentials - on data that creates real added value,” Asmussen said. A change of direction could be achieved through a stronger mandate for the European Financial Reporting Advisory Group (EFRAG). “EFRAG should streamline existing rules instead of continuing to create new requirements,” Asmussen emphasised.
About the Competitiveness Compass
The Competitiveness Compass is based on the reports by economists and former Italian Prime Ministers Enrico Letta and Mario Draghi on strengthening European competitiveness. It is the first major initiative of the new EU legislative term. The Compass highlights key challenges such as the innovation gap compared to other economies, the development of a roadmap to increase competitiveness, the urgency of decarbonisation and the importance of increased security measures. It serves as a guide for the Commission's political work over the next five years.
