The capital markets union (CMU) is a plan to create a single market for capital. It aims at getting money – investments and savings – flowing across the EU so that it can benefit consumers, investors and companies, regardless of where they are located.
A Capital Markets Union will
- provide businesses with a greater choice of funding at lower costs and provide SMEs in particular the finance they need;
- support the economic recovery post-Covid-19 and create jobs;
- offer new opportunities for savers and investors;
- help Europe deliver its New Green Deal and Digital Agenda;
- reinforce the European financial sovereignty;
- make the financial system more resilient.
The steps towards a CMU taken so far
The CMU initiative was launched by the Juncker Commission, which adopted the first CMU action plan in September 2015. It sets out a list of over 30 actions to establish the building blocks of an integrated capital market in the EU by 2019.
- April 2016
The Commission took stock of the progress made in the first six months of implementation of the CMU action plan in its first status report.
- June 2017
The Commission mid-term review updated and complemented the CMU action plan by strengthening existing actions and introducing new measures in response to evolving priorities and challenges. These measures were largely completed in September 2019.
The Commission published a progress report showing that the Commission has tabled all the legislative proposals it committed to in the CMU action plan and mid-term review.
Working towards a capital markets union remains a top priority of the Von Der Leyen Commission and is part of Executive Vice President Valdis Dombrovskis’ mandate for an economy that works for people.
- Currently and onwards
The Commission is preparing a new action plan on the CMU, scheduled to be published in the early fall of 2020.
To feed into its work on the future CMU policies, the Commission in November 2019 brought together 28 highly experienced industry executives and top international experts and scholars in the High Level Forum on CMU. The Forum published in June 2020 its final report with 17 recommendations to the Commission on the way forward to completing CMU.