New momentum to finally advance the integration of European financial markets
Strengthening markets, fostering growth
The Capital Markets Union (CMU) is set to enhance and deepen the free flow of capital, one of the four fundamental freedoms of the European Single Market. The initiative was launched by the European Commission in 2015 and aims to remove barriers to cross-border investment, improve access to finance for European companies, diversify financing options (including cost reduction), make it easier for SMEs to raise capital, and increase the European Union’s attractiveness for global investment.
However, progress to date has not been sufficient and the CMU remains high on the European policymakers' agenda. Recent developments around the materialized Brexit and the COVID-19 pandemic have given the initiative a great sense of urgency to ensure that EU capital markets can play their role as a key pillar of the real economy by contributing efficiently to a sustainable recovery and a strong European Union.
A new CMU action plan adopted by the European Commission in 2020 sets the course for the coming years, outlining a series of 16 key actions that are be taken to make progress in three areas:
- Supporting a green, digital, inclusive and resilient economic recovery by making financing more accessible to European companies
- Making the EU an even safer place for individuals to save and invest long-term
- Integrating national capital markets into a genuine single market