Capital Markets Union: an Action Plan to boost business funding and investment financing

The European Commission is launching the Capital Markets Union Action Plan today to help build a true single market for capital across the 28 EU Member States. The Capital Markets Union (CMU), a key pillar of the Investment Plan, aims to tackle investment shortages head-on by increasing and diversifying the funding sources for Europe’s businesses and long-term projects. The Commission wants to make it easier for companies and infrastructure projects to get the finance they need, regardless of where they are located. European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness said: “The most important part of the Investment Plan for Europe is removing obstacles to investment by deepening the single market. During my roadshows, I have heard many times that insurers struggle to invest in infrastructure projects, so I hope that with today’s new rules they will have the right incentives for sound investments.” Commissioner Jonathan Hill, responsible for Financial Stability, Financial Services and Capital Markets Union said: “I want the capital markets Union to help European businesses, and our SMEs in particular, have a wider range of funding options. I want it to give consumers more options for investing their money. I want to knock down barriers to make it easier for capital to flow freely across all 28 Member States.” The CMU is a medium-term project with some important early initiatives. The Commission is today unveiling a first set of measures to relaunch high-quality securitisation, and to promote long-term investment in infrastructure. The Commission is also launching two consultations on Venture Capital Funds and on Covered Bonds, as well as a call for evidence on the cumulative impact of financial legislation. In addition, the Commission will announce changes to the Prospectus Directive before the end of the year, to make it easier and less expensive for small and medium-sized companies to raise capital. A press release including a video clip is available in all EU languages, as well as a MEMO on CMU, on securitisation, on Solvency II and on call for evidence.