The state government of Hesse is voicing opposition to European Union proposals that would transfer oversight of the Frankfurt Stock Exchange to the European Securities and Markets Authority (ESMA) based in Paris. Premier Boris Rhein (CDU) and Minister of Economic Affairs Kaweh Mansoori (SPD) jointly expressed their concerns on Tuesday in Wiesbaden, emphasizing the importance of decentralized oversight for Frankfurt’s financial hub.
Premier Rhein cautioned against the potential risks associated with centralization, stating that decentralized control of the Frankfurt Stock Exchange is crucial, particularly during times of economic volatility. He argued that such a system is better positioned to understand market conditions and react quickly to emerging challenges. The relocation of oversight responsibilities to Paris, according to the state government’s assessment, could increase bureaucracy and ultimately weaken Frankfurt’s standing as a leading financial center.
Minister Mansoori underscored the principle of subsidiarity, asserting that decisions should be made at the level closest to where they have the greatest impact. He highlighted the existing expertise of the Hessian supervisory bodies, who possess a deep understanding of the region’s financial landscape and a successful track record developed over decades. A transfer of responsibilities would, he warned, risk jeopardizing specialized knowledge and operational flexibility.