Which upcoming EU policy initiatives should keep corporate treasurers awake at night?

In this issue:

EU Policy Initiatives
Negative Elements Caused By Rates Below Zero
European Treasurers Join Forces on Instant Payments
German eID Initiative
How are European Companies Managing Their Financial Risks?

We hope you enjoy the February edition of the EACT Newsletter.

Please be sure to visit the EACT website and follow the EACT LinkedIn page for the very latest member association news and treasury insight.

Jean-Marc Servat
Chair, EACT

Which EU policy initiatives could and should keep corporate treasurers awake at night in the coming two years?

EU policymakers are in the process of launching an ambitious reform agenda across almost all segments of the regulatory framework for financial services. With all of the inevitable touchpoints this will have for corporate treasurers, it will remain as crucial as ever for treasurers to be a part of the policy dialogue.

Negative elements caused by rates below zero have largely supplanted positive ones

The Central Bank of Sweden has decided to end the experience of negative interest rates. It raised its main policy interest rate to zero percent. The ten-year bond rate increased from minus 0.40% to plus 0.08%. Placing at ten years to gain rather nothing, this remains very disappointing in terms of return. But the fundamental question that pains us all is whether the other Central Banks, including the ECB, will dare to follow the Swedish.

European treasurers join forces on Instant Payments

At the 2019 EACT Summit, some participants developed the idea to join corporate treasurers across the EACT members for a discussion on Instant Payments. And in June 2019 it took place: the French Association of Corporate Treasurers (AFTE) hosted the exchange on Instant Payments in Paris.

German eID Initiative

In November 2018, the Deutsche Bundesbank implemented a working group - that included the German Association of Corporate Treasurers (VDT) - with the target to analyse and to provide possible applications of eID in payment transactions and cash management. The report is now available.

How are largest European companies managing their financial risks?

The “Handbook of Corporate Financial Risk Management” is primarily directed to Treasurers, CFOs and Risk managers at non-financial corporations and contains 43 real-life case studies, based on over 700 client projects over 14 years. The book covers both financial risk management and optimal capital structure as well as a range of other topics.