Why do we need a capital markets union?

The capital markets union (CMU) is a plan to create a single market for capital. The aim 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.

A capital markets union will

• provide businesses with a greater choice of funding at lower costs and provide SMEs in particular with the financing they need
• support the economic recovery post-Covid-19 and create jobs
• offer new opportunities for savers and investors
• create a more inclusive and resilient economy
• help Europe deliver its new green deal and digital agenda
• reinforce the EU’s global competitiveness and autonomy
  •  make the financial system more resilient so it can better adapt to the UK’s departure from the EU

2020 CMU action plan implementation

While progress has been made since the CMU initiative was launched in 2015, EU capital markets remain fragmented. The Commission therefore adopted on 24 September 2020 a new CMU action plan. The plan set out 16 legislative and non-legislative measures to deliver on three main objectives

• support a green, inclusive and resilient economic recovery
• make the EU an even safer place to save and invest long-term
• integrate national capital markets into a genuine single market

Since the adoption of the 2020 CMU action plan, a strong and complete CMU is needed more than ever, in order to support the economic recovery following the COVID-19 crisis, finance the green and digital transitions and enhance the EU’s open strategic autonomy.

On 25 November 2021, the European Commission delivered on several key commitments in the 2020 CMU action plan by adopting a package of four legislative proposals. This CMU package also includes a communication that explains how the legislative proposals fit together, sets out some key deliverables for 2022 and provides an update on the implementation status of all other actions from the 2020 CMU action plan.

On 7 December 2022, the European Commission adopted and published three additional legislative proposals delivering on the 2020 CMU action plan. This CMU package on listing, insolvency and clearing will be essential to make EU capital markets more attractive for consumers, investors and companies, regardless of where they are located.

Measures already implemented

The Commission has largely delivered on the individual actions announced in the 2015 CMU action plan and the 2017 mid-term review. The European Parliament and Member States have so far agreed on 12 out of 13 legislative proposals put forward by the Commission. In addition, the Commission has completed a number of non-legislative measures to further the aims of CMU.

See all the legislative measures taken so far to build a CMU

Studies under the CMU

Since the launch of the first capital markets union action plan in 2015, the Commission carried out a number of studies, prepared by external consultants, to inform its work in specific areas. This research helps the Commission shape policy actions and identify where legislation may be needed.