The European Commission has said that it welcomes the European Parliament’s final votes on legislation putting in place the building blocks of a Capital Markets Union (CMU).
It said the adoption of a substantial number of proposals constitutes another step forward in the completion of the CMU, one of the Juncker Commission’s top political priorities.
The Capital Markets Union project has been at the heart of this Commission’s ambition to boost growth in Europe, invest in innovation and promote the EU’s global competitiveness.
With now 11 out of 13 proposals agreed, the CMU will become a true driver of investment in the Single Market, providing additional sources of financing to EU companies and opportunities for citizens to save for their future. The CMU channels investment to environmentally-friendly projects, thereby contributing to the EU’s sustainable and carbon-neutral agenda. A strong CMU is also necessary to complement the Banking Union in order to strengthen the Economic and Monetary Union and the international role of the euro.
Commission Vice-President Valdis Dombrovskis, responsible for Financial Stability, Financial Services and Capital Markets Union, said: “The Capital Markets Union will enable companies to find more funding opportunities both domestically and across the Union and provide consumers with more choices to save for their future.”
The official added, “Alternative market-based sources of financing are particularly important to finance innovation, entrepreneurship and start-ups, which are main engines of job creation. While the project will benefit all Member States, it will particularly strengthen the Economic and Monetary Union by promoting private risk-sharing.”
Jyrki Katainen, Commission Vice-President responsible for Jobs, Growth, Investment and Competitiveness commented, “The Commission has delivered on its commitment to put in place the building blocks of a Capital Markets Union by 2019.
” The CMU contributes directly to the Juncker Commission’s commitment to boost investment, jobs and growth by diversifying market-based finance for European companies. We have now laid the foundations for the CMU and efforts must continue into the next mandate so that businesses big and small, investors and savers can continue to reap the benefits.”
Overall, all the adopted proposals will contribute to expanding the CMU’s objectives of innovative financing and creating more investment opportunities from the local to the European level. Each of them covers a specific scope of action.