POLITICO: Coming soon, to a capital market near you…

25 September 2015

Five takeaways from the EU’s Capital Markets Union action plan obtained by POLITICO.

A draft of the action plan and the first batch of accompanying legislation obtained by POLITICO shows what is coming. Here are five takeaways from the file.

1. First off, the Capital Market’s Union isn‘t a thing. [...]

“There is no single measure that will deliver a Capital Markets Union,” the action plan reads.

Instead Hill has been explaining his constellation of plans for months, repeating this message: The Capital Markets Union is a classic EU single-market project that attempts to link savings with growth. [...]

2. As simple as it sounds, the details are complex. Over the next three years at least, the CMU will go to work in the deep plumbing of financial markets — trying to winnow financial regulations passed in response to the crisis; changing capital requirements for insurance funds; simplifying the documents companies searching for investment capital have to produce; attempting to harmonize 28 member states’ insolvency laws and tax codes where possible — while simultaneously making the realm of financial investments more welcoming for regular citizens with little expertise or financial literacy. [...]

3. The big push comes next year. 

For the remainder of this year, the commissioner’s first steps include:

Then, his docket for 2016 includes:

The timetable mentions further plans for 2017, along with a “stock-take” on how to proceed. The CMU will remain a living project that evolves in response to economic developments and the outcome of investigations built into the first two years.

4. The onus is also on the private sector. “The success of the CMU will also depend on market participants,” the action plan reads. [...]

Full article on POLITICO