The Capital Markets Union (CMU) is described as a flagship initiative of the Commission. It has been described as one of the important initiatives initiated by the European Commission to be considered over the next few years.
It aims to unlock funding for capital markets whereas at the moment European businesses remain heavily reliant on banks for funding. In essence, the task is to find ways of linking investors and savers with growth. This involves a number of measures rather than any single initiative. The idea is that cumulatively the impact will be significant.
The Commission's Green Paper on Building a Capital Markets Union1 marked the beginning of a three month consultation which ended on 13 May. The Commission plan to organise a conference in the summer of 2015 to draw the Consultation to a close. An Action Plan on Capital Markets Union is to be published later in 2015.
In this Briefing Paper we set out some of the key proposals put forward by the Commission and highlight some of the key comments made by regulators so far on priorities for action.