On 24 September 2020 the Commission adopted a new capital markets union action plan.
The aim of capital markets union (CMU) is to get money – investments and savings – flowing across the EU so that it can benefit consumers, investors and companies, regardless of where they are located. The COVID-19 crisis is making it more urgent than ever to deliver on CMU.
Market-based financing is essential to sustain the recovery and the return to long-term growth and to finance the green and digital transitions of our economy. In addition, CMU can contribute to a more inclusive and resilient society, notably by helping to meet the challenges posed by an ageing population. Lastly, integrated capital markets are crucial for the EU’s global competitiveness and its autonomy.
Key objectives and actions
The CMU action plan proposes 16 legislative and non-legislative actions with 3 key objectives:
1. Support a green, digital, inclusive and resilient economic recovery by making financing more accessible to European companies
- Action 1: Making companies more visible to cross-border investors
- Action 2: Supporting access to public markets
- Action 3: Supporting vehicles for long-term investment
- Action 4: Encouraging more long-term and equity financing from institutional investors
- Action 5: Directing SMEs to alternative providers of funding
- Action 6: Helping banks to lend more to the real economy
2. Make the EU an even safer place for individuals to save and invest long-term
- Action 7: Empowering citizens through financial literacy
- Action 8: Building retail investors' trust in capital markets
- Action 9: Supporting people in their retirement
3. Integrate national capital markets into a genuine single market
- Action 10: Alleviating the tax associated burden in cross-border investment
- Action 11: Making the outcome of cross-border investment more predictable as regards insolvency proceedings
- Action 12: Facilitating shareholder engagement
- Action 13: Developing cross-border settlement services
- Action 14: Consolidated tape
- Action 15: Investment protection and facilitation
- Action 16: Supervision