21 May 2015

ECB: Building a Capital Markets Union – Eurosystem contribution to the European Commission’s Green Paper

• Effective implementation of the Green Paper requires a clear prioritisation of actions and a timetable with specific milestones and targets.
• CMU should aim for a high level of financial integration that sustainably completes the Single Market in this area.
• CMU should also seek to create the conditions for the development of capital markets.
• Financial integration and financial development are distinct but interrelated objectives of CMU.
• CMU, if well designed and implemented, can contribute to the stability of the financial system and enhance risk sharing.
• Fostering European equity markets should be a main objective of the CMU.
• As the CMU agenda progresses, sufficient attention should be devoted to potential new risks to financial stability.
• Transparency and data availability are essential for close surveillance in the context of safeguarding financial stability and reinforcing financial integration.
• A single rulebook is needed to enhance the level playing field and support the integration of capital markets in Europe.
• Legislative action in targeted areas is warranted.
• Further reducing existing fragmentation in financial market infrastructures will be a key dimension in establishing CMU.
• CMU warrants a strengthened implementation and enforcement of rules, and an appropriate supervisory framework leading ultimately to a single European capital markets supervisor.
• CMU is first and foremost an EU - 28 agenda, but enhanced cooperation in some relevant areas could be explored.
• As CMU is pursued, a broader and strengthened macroprudential toolkit is warranted.
• Even if a genuine CMU is achieved, banks will continue to play a central role.
• The ECB will also play a role in this project.

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