OSLO: Norway’s sovereign wealth fund, the world’s largest, is calling on the European Union (EU) to accelerate efforts to unify its capital markets.

It’s sent a 14-page letter to the European Commission on Tuesday in response to a consultation on streamlining the union’s financial systems.

The fund urged the bloc’s executive to harmonise withholding-tax rules, lower settlement costs and create a better digital infrastructure.

Norway’s US$1.9 trillion wealth fund is the biggest single owner of stocks in the world, with about 1.5% of global stocks.

It’s also the largest owner of European stocks and securities, according to the letter seen by Bloomberg. The Financial Times reported the news earlier.

“We share the concern that European markets over time have fallen behind in terms of business dynamism and the provision of new investment opportunities to institutional investors,” said the fund, known as Norges Bank Investment Management (NBIM).

At the end of 2024, NBIM held €285bil (US$325bil) in securities issued by EU member states and European corporates, according to the letter.

Its response is part of an EU consultation on the establishment of a Savings and Investments Union framework.

The EU should centralise supervision of capital markets to ensure all member states apply rules consistently as the current patchwork of national regulators fosters regulatory arbitrage and legal uncertainty, the fund said.

“Better and simpler regulation is key to facilitate capital market evolution,” the fund said. — Bloomberg