In a resolution on the Cum-Ex/Cum-Cum scandal of 29 November 2018, the European Parliament has called on the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) to investigate dividend arbitrage transactions. Parliament argued that the scandalous financial activities posed a risk to the integrity and stability of European financial markets.
However, the authorities had not yet taken a formal decision on the investigation, but had merely initiated a discussion among the national member authorities. This delay prompted me, along with my three colleagues Pervenche Berès (S&D), Othmar Karas (EPP) and Wolf Klinz (ALDE), to send a letter to the two authorities urging them to open the investigation as soon as possible.
In the letter, we stress the urgency of a European response to the Cum-Ex/Cum-Cum scandals, because they are cross-border, cost European taxpayers billions and, according to research, continue to this day. Continued inaction by the authorities damages the credibility of European democracy. In the event of further inaction, we are considering launching another European Parliament resolution.
MEP Sven Giegold, financial and economic policy spokesperson of the Greens/EFA group commented:
“The national member authorities must finally give up their blockade and clear the way for a European investigation into the Cum-Ex/Cum-Cum scandal. The delayed decision shows again the serious conflicts of interest of the national authorities, which want to avoid scrutiny by the European supervisors at any price. Those who, like most Member States, push ahead with the capital market union, but at the same time sabotage European supervision, lose credibility and harm Europe. The blockade of the investigation is at the expense of honest companies and taxpayers.
The European Parliament cannot stand idly by in the face of constant tax theft. If the EBA and ESMA remain inactive, we in Parliament will be putting forward another resolution. This is an assertive Parliament, that will not shy away from taking actions. It starts with Parliament having to approve the funds for European financial supervisors every year.”
Link for letter send to EBA:
Link for letter send to ESMA: https://sven-giegold.de/wp-content/uploads/2019/04/Cum-ex-letter-ESMA.pdf