“Ideally, the agreement of the heads of state and government should be ambitious in terms of the size and composition of the package, broadly in line with what has been proposed by the Commission,” Lagarde told Reuters. As part of the CAI negotiations, the EU intends to lift ownership restrictions, “capital caps” and the development of the branch network. It also aims to reduce capital and liquidity requirements, as they increase market entry costs. Although the capital caps imposed by China are based on the WTO GATS schedule, the caps limit the expansion of EU financial sector companies and the effective control of their subsidiaries in China, as important trade decisions are in the hands of Chinese partners in joint ventures. From the point of view of a level playing field, foreign financial service providers may be upset by the fact that their Chinese counterparts benefit from an open market in Europe, but not from such reciprocity in China. For example, foreign insurers must have 30 years of establishment before operating in China, while in Europe, Chinese insurers do not face such a requirement. The Framework Agreement on Financial Transactions, commonly known as the European Master`s Agreement (EMA), is a highly innovative, multilingual, transnational and multi-product agreement sponsored by the EBF in collaboration with the European Savings Bank Group and the European Association of Cooperation Banks. It is at this moment that a new chapter in the history of the European Union is being written. The new financial agreement, which was concluded on 21.