Capital Markets Union Action Plan

SUMMARY OF:

Communication: Capital Markets Union Action Plan (COM (2015) 468 final)

SUMMARY

WHAT DOES THIS COMMUNICATION DO?

• It sets out an action plan to help create more funding for EU businesses.
• Its overall aim is to stimulate investment, growth and jobs in the EU's economy, leading to a single EU market for capital.

KEY POINTS

• The action plan is built around a number of core principles. These include:
  • creating more opportunities for businesses and investors;
  • building a more stable financial system; and
  • increasing integration of financial markets in the EU.
• The Communication sets out a timetable and a series of initiatives to be adopted by the European Commission in the short and medium term to help build a Capital Markets Union by 2019.
• Short-term actions include:
  • new rules to create an EU framework for simple, transparent and standardised securitisation*;
  • a proposal to amend the Prospectus* Directive;
  • a public consultation on venture capital* as a possible source of financing for small businesses;
  • a public consultation on the cumulative impact of current EU financial rules to identify any problems;
  • a public consultation on retail financial services.
• Medium-term actions include development of a strategy for providing technical assistance to EU countries to support their ability to be part of a Capital Markets Union.
• Long-term actions include:
  • supporting access to finance, e.g. by removing barriers to SME investment;
  • increasing investment, e.g. by supporting savings towards retirement;
  • removing obstacles, such as tax barriers, to investment between EU countries.

The Action Plan is a key pillar of the Investment Plan for Europe which aims to stimulate investment and growth in the EU towards economic recovery, following the recent financial crisis.

BACKGROUND

Capital Markets Union

KEY TERMS

* Securitisation: a transaction that enables a lender – often a bank – to refinance a set of loans/assets (e.g. mortgages, car leases, consumer loans, credit cards) by converting them into securities that others can invest in.

* Venture capital: money provided by investors to start-up firms and small businesses which are perceived to have long-term growth potential.

* Prospectus: a legally required document that provides details about an investment offering for sale to the public.

ACT

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Action Plan on Building a Capital Markets Union (COM(2015) 468 final of 30.9.2015)

RELATED ACTS

Commission Staff Working Document: Economic Analysis Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Action Plan on Building a Capital Markets Union (SWD(2015) 183 final of 30.9.2015)

Commission Staff Working Document:Feedback Statement on the Green Paper ‘Building a Capital Markets Union’ Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Action Plan on Building a Capital Markets Union (SWD(2015) 184 final of 30.9.2015)

last update 12.01.2016