What the Commission is doing

The European Commission is currently working on the capital markets union: a landmark project to unlock funding for Europe’s businesses and boost growth in EU countries by creating a true single market for capital.

The Commission is also monitoring the effectiveness of the reforms introduced in the wake of the financial crisis and is working on making retail financial services work better for consumers and small investors.

Objectives

The capital markets union aims to:

  • 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 an EU capital market where investors can invest funds without hindrance across borders and businesses can raise the required funds from a diverse range of sources, irrespective of their location

The new rules for banks and the banking union aim to:

  • ensure financial institutions are better regulated and supervised both in the Eurozone and all over the EU
  • ensure banks are better capitalised and risks better controlled
  • protect depositors and retail investors
  • set up resolution mechanisms for failing banks which will put an end to the era of massive bailouts paid for by taxpayers