EU launches work on setting up Capital Markets Union
Xinhua, January 28, 2015 Adjust font size:
The European Commission on Wednesday launched its project to create a Capital Markets Union (CMU) for all 28 EU Member States with a first orientation debate at the meeting of commissioners.
The orientation debate in the meeting was focused on the key challenges and priorities for the integration of capital markets. The commissioners concluded that a Green Paper should be adopted next month to consult all interested parties on the way forward and concrete areas for potential action.
"One of the key challenges Europe faces is to get investment flowing to support jobs and growth. A true single market for capital in all 28 Member States would help support that goal by linking savers and investors with businesses, big and small, that want to grow," said Commissioner Jonathan Hill, responsible for Financial Stability, Financial Services and Capital Markets Union.
The CMU is one of the flagship projects of this Commission and it aimed to create a single market for capital for all 28 Member States by removing barriers to cross-border investment and lower costs of funding within the EU.
In many parts of Europe, especially SMEs remain heavily reliant on banks for their funding needs. A key objective of the CMU will be to diversify and extend sources of funding so that businesses have easier access to credit through capital markets as well as banks, and we need to boost the cross border dimension of access to funding.
Based on the feedback it receives, the Commission will unveil an Action Plan on the CMU during third quarter of 2015. Endit