Covered bonds have already proved themselves over centuries in some of European markets. They have provided robust and flexible methods for raising finance, benefitting both issuers and investors in a reasonably transparent framework. In the run-up to the Commission’s proposal for a Directive, the European Parliament has approved a comprehensive and well-balanced resolution. As Shadow Rapporteur on this file, I have voted in favour on the following understanding: First, in the moves towards a Capital Markets Union (CMU), it would be inconceivable not to allow space for covered bonds. The CMU does not have to be entirely seamless, nor does it have to apply on one-size-fits-all basis; but it cannot have significant gaps in its structure, which would be the case if covered bonds were not included in its purview. Secondly, such Directive would establish a clear definition that preserves the covered bond brand identity throughout a principle-based approach; does not force too many details that would apply across different national markets and takes due recognition of long-standing national systems that have been working well until now, without disrupting them. Thirdly, a Directive would benefit Member states that do not have such market yet or where it is still underdeveloped.