Rebranding Capital Markets Union: A market finance action plan

The European Union needs an action plan to stimulate market finance across EU markets. While the CMU has been successful in terms of legislation, but much less so in its impact on markets, which remain highly fragmented. Risk capital has barely grown and Europe now finds itself even further behind the United States. This is undermining the competitiveness of the European economies and corporations, as well as the credibility of the project.

The CEPS-ECMI report, Rebranding Capital Markets Union: A market finance action plan, chaired by Vítor Constâncio and written by the Karel Lannoo and Apostolos Thomadakis, stresses the need for political support at the highest level if CMU is to achieve its objectives. It recommends focusing action on the core bond and equity markets, and on promoting the participation of individuals in capital markets while introducing a set of indicators to measure progress towards more market-based finance.