Capital Markets Union

Unlocking funding for Europe’s growth


The Capital Markets Union (CMU) is a plan of the European Commission to mobilise capital in Europe. It will channel it to all companies, including SMEs, and infrastructure projects that need it to expand and create jobs. By linking savings with growth, it will offer new opportunities for savers and investors.

Deeper and more integrated capital markets will lower the cost of funding and make the financial system more resilient. All 28 Member States of the EU will benefit from building a true single market for capital.

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Stronger capital markets will complement Europe’s strong tradition of bank financing, and will:

  • Unlock more investment from the EU and the rest of the world;
  • Better connect financing to investment projects across the EU;
  • Make the financial system more stable;
  • Deepen financial integration and increase competition.

The Capital Markets Union is a new frontier of Europe’s single market. Its creation is a key element of the Investment Plan announced by the Juncker Commission in November 2014.

In a nutshell

The challenges

  • Investment in Europe remains heavily reliant on banks
  • Significant differences in financing conditions between Member States exist
  • There are differing rules and market practices for products like securitised instruments or private placements
  • Shareholders and buyers of corporate debt rarely go beyond their national borders when they invest
  • Many SMEs still have limited access to finance

The objectives

  • Develop a more diversified financial system complementing bank financing with deep and developed capital markets
  • Unlock the capital around Europe which is currently frozen and put it to work for the economy, giving savers more investment choices and offering businesses a greater choice of funding at lower costs
  • Establish a genuine single capital market in the EU where investors are able to invest their funds without hindrance across borders and businesses can raise the required funds from a diverse range of sources, irrespective of their location

Implementing the Action Plan

The Action Plan on Building a Capital Markets Union sets out a programme of 33 actions and related measures, which aim to establish the building blocks of an integrated capital market in the European Union by 2019. Implementing these actions will require sustained effort and continued commitment by all parties. The Commission will regularly publish status reports to monitor progress and ensure that this important reform project remains on track.

Status reports

First Status Report

Action Plan on building a Capital Markets Union

On 30 September 2015, the Commission adopted an action plan setting out a list of key measures to achieve a true single market for capital in Europe.

Accompanying initiatives

Together with the Action plan, the Commission also adopted some of the measures listed in the plan.

Other documents

Videos

Capital Markets Union: unlocking funding for Europe's growth

Testimonial videos

Capital Markets Union: unlocking funding for Tara
Capital Markets Union: unlocking funding for Sylvia
Capital Markets Union: unlocking funding for Pelayo
Capital Markets Union: unlocking funding for Elena
Capital Markets Union: unlocking funding for David
Capital Markets Union: unlocking funding for Jan

Speeches

Keynote speech by Commissioner Jonathan Hill at the Joint ECB-European Commission Conference
Speech by Commissioner Jonathan Hill at the Seventh Bruges European Business Conference "Capital Markets Union"
European Forum for Manufacturing and Association for Financial Markets in Europe Dinner Debate, speech by Commissioner Hill

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DG FISMA Conference on Covered Bonds, keynote speech by Commissioner Hill
Trans Atlantic Consumer Dialogue, keynote address by Commissioner Hill
Conference: Euromoney Capital Markets Union Forum, speech by Commissioner Hill
Overhaul of prospectus rules for the Capital Markets Union, speech by Commissioner Hill
2015 ECMI Annual Conference, speech by Commissioner Hill
Exchange of views with the European Parliament’s Economic & Monetary Affairs Committee, speech by Commissioner Hill
Launch of the Capital Markets Union Action Plan, speech by Commissioner Hill
Building a stronger single market in capital, speech by Commissioner Hill
Contribution of the audit to the capital markets union, speech by Commissioner Hill
Conference: Next Steps to Build a Capital Markets Union, speech by Commissioner Hill
Refocusing financial integration on growth and jobs, speech by Commissioner Hill
The Capital Markets Union: breaking down the barriers to completing the single market, speech by Commissioner Hill
Pensions, investment and Europe: the new agenda, speech by Commissioner Hill
The Role Financial Markets can play in Growth and Jobs, speech by Commissioner Hill
Presentation of Green Paper on Capital Markets Union, speech by Commissioner Hill
Unlocking funding for Europe’s growth, speech by Commissioner Hill
Finance at your service – capital markets union as an instrument of sustainable growth, speech by Commissioner Hill
Building to last: boosting long-term investment in Europe, speech by Commissioner Hill
Capital Markets Union – finance serving the economy, speech by Commissioner Hill

Preparing the action plan

Public hearing on the Next steps to build a Capital Markets Union - 08.06.2015

The European Commission hosted a public hearing on the “Next steps to build a Capital Markets Union” in Brussels on Monday, 8 June 2015. The conference marked the end of the public consultation on the Commission Green Paper.

Public consultation on Capital Markets Union - 18.02-13.05.2015

Which concrete steps should we take to achieve an integrated and well-regulated Capital Markets Union of the 28 Member States? In February 2015 the European Commission launched a public consultation to get a shared diagnosis of the problems and set out an agenda of the initiatives to take.

Related consultations - 18.02-13.05.2015

Consultation on high quality securitisation


Consultation on the review of the Prospectus Directive