Norway’s oil fund calls for urgent reform of European capital markets
Post Content:
The world’s largest sovereign wealth fund, Norway’s $1.9 trillion oil fund, has called for swift and ambitious reform of Europe’s capital markets.
📉 Over the past decade, the fund’s allocation to European equities has dropped from 26% to just 15%, while its exposure to U.S. equities has increased to 40%.
🇪🇺 The fund argues that Europe’s fragmented legal and regulatory landscape is a major obstacle for investors:
- Differing national rules on securities and corporate governance
- Inconsistent insolvency frameworks
- Withholding tax complexities
- Disjointed debt issuance processes
- Lack of unified supervision and insufficient liquidity
💬 “We need structural reform, not just incremental improvements,” the fund stated in its response to the European Commission’s consultation on Capital Markets Union.
🔍 The goal is to make European capital markets more attractive, competitive, and able to support fast-growing companies, helping Europe keep pace with the U.S. and Asia.
Conclusion:
With the backing of one of Europe’s biggest investors, this is a critical wake-up call for policymakers. The time to act is now.
