Capital Markets Union: European Commission issues report on tackling national barriers to spur cross-border investment

The European Commission has today adopted a report looking at how to tackle national barriers with a view to fostering the flow of cross-border investments in the EU. The report, which is based on the work of a group of national financial experts, identifies national hurdles, such as withholding tax procedures, residence requirements imposed on the management of financial institutions and a lack of financial literacy. The ECOFIN Council in 2015 supported the Commission in this exercise and called for a roadmap to tackle the most damaging national barriers. Today’s report proposes such a roadmap and calls on the Member States to endorse it and take action. The report chimes with Commission efforts to create integrated financial markets in the EU as part of its Capital Markets Union. It will feed into work to create clear, predictable and stable environment that allows for more investment and a more efficient allocation of capital.