Communication on the mid-term review of the Capital Markets Union action plan

Author (Corporate)
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Series Details (2017) 292 final (8.6.17)
Publication Date 08/06/2017
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The Commission’s top priority is to strengthen the EU economy and stimulate investment to create jobs. To strengthen investment for the long term, we need stronger capital markets. These markets need to provide new sources of corporate financing and help increase investment options, unlocking the concrete benefits of the Single Market for EU businesses and households.

EU businesses, from start-ups and scale-ups to well-established multinationals, need access to a wide range of funding sources, to invest in innovation and company expansion. Households need access to capital markets, to have more and better opportunities to invest for their future. The financial products and services required can be offered at more competitive terms by financial institutions, banks, investment firms and institutional investors operating in large and integrated capital markets. Capital markets also have the potential to channel private funds towards more sustainable investment.

The EU economic recovery is gaining momentum, with a fifth consecutive year of growth. There are, however, significant downside risks. The contribution of investment to growth remains low and the investment rate is still below pre-crisis levels. This persistent weakness in investment continues to drag on the momentum of recovery and longer-term growth. That is why President Juncker set as one of his key priorities, the need to build a true single market for capital — a Capital Markets Union (CMU) for all Member States.

Recently, a number of new challenges to financial integration have arisen, which impose a need to strengthen and transform the EU’s capital markets reform agenda. In particular, the future departure of the largest financial centre from the EU makes it necessary to re-assess how CMU can ensure that EU businesses and investors have access to strong, dynamic and more integrated capital markets, while risks to financial stability are properly managed. This calls for stronger action, more effective supervision and measures to ensure the benefits of CMU are felt across the entire EU. CMU must also propose ways to harness the transformative power of financial technology and to shift private capital towards sustainable investment.

The Commission is committed to addressing these challenges. That is why this review updates and complements the original agenda with new priority measures, drawing on the responses to the public consultation in January-March 2017. All proposals will be subject to the appropriate consultation and impact assessment will be carried out on the full range of options for achieving the objectives.

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Related Links
ESO: Background information: Mid-term review of the Capital Markets Union
EUR-Lex: SWD(2017)224: Economic analysis
EUR-Lex: SWD(2017)225: Feedback statement for the public consultation on the Capital Markets Union mid-term review

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