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Capital markets union 2020 action plan: A capital markets union for people and businesses

The next step in the Commission’s project to build a single market for capital – one that supports people, businesses and the economy.

Background

The aim of capital markets union (CMU) is to get money – investments and savings – flowing across the EU so that it can benefit consumers, investors and companies, regardless of where they are located.

While progress has been made since the CMU initiative was launched in 2015, EU capital markets remain fragmented. This means that European citizens and businesses are not able to fully benefit from the deep, competitive, efficient and reliable sources of funding and investment that capital markets can offer.

A strong and complete CMU is needed now more than ever, in order to support the economic recovery following the COVID-19 crisis and finance the green and digital transitions. In addition, CMU can contribute to a more inclusive and resilient society, notably by helping to meet the challenges posed by an ageing population. Lastly, integrated capital markets are crucial for the EU’s global competitiveness and its autonomy.

Against this backdrop, the Commission on 24 September 2020 adopted a new CMU action plan.

Key objectives and actions

The CMU action plan proposes 16 legislative and non-legislative actions to deliver on three key objectives:

1. Support a green, digital, inclusive and resilient economic recovery by making financing more accessible to European companies

  1. Action 1

    Making companies more visible to cross-border investors

  2. Action 2

    Supporting access to public markets

  3. Action 3

    Supporting vehicles for long-term investment

  4. Action 4

    Encouraging more long-term and equity financing from institutional investors

  5. Action 5

    Directing SMEs to alternative providers of funding

  6. Action 6

    Helping banks to lend more to the real economy

2. Make the EU an even safer place for individuals to save and invest long-term

  1. Action 7

    Empowering citizens through financial literacy

  2. Action 8

    Building retail investors' trust in capital markets

  3. Action 9

    Supporting people in their retirement

3. Integrate national capital markets into a genuine single market

  1. Action 10

    Alleviating the tax associated burden in cross-border investment

  2. Action 11

    Making the outcome of cross-border investment more predictable as regards insolvency proceedings

  3. Action 12

    Facilitating shareholder engagement

  4. Action 13

    Developing cross-border settlement services

  5. Action 14

    Consolidated tape

  6. Action 15

    Investment protection and facilitation

  7. Action 16

    Supervision

Related links

Press release

Frequently asked questions

Text of the new CMU action plan

Factsheet: What is the capital markets union?

Watch the press conference