Deals & MarketsEU weighs up benefits of capital markets union

EU weighs up benefits of capital markets union

Consultations are currently underway in the EU to determine whether a single market for capital could be rolled out across all 28 member states.

Consultations are currently underway in the EU to determine whether a single market for capital could be rolled out across all 28 member states.

Called a “Green Paper” the consultation round aims to spark debate on how such a market could be created. It will then use the insights harvested from the round to develop an action plan that, it says, would help to open up non-bank funding sources.

In addition, the key aims of the capital union market would be to improve access to finance for business and infrastructure projects across Europe and remove barriers to cross-border investments. In turn, it says, this would diversify the ways in which the economy is funded while reducing the cost of raising capital

As groups such as Business for New Europe have suggested, the move could have benefits for start-ups and SMEs as well as larger corporations. The Commission says that it wants smaller firms to be able to raise capital as easily as large ones.

“Capital markets union is about unlocking liquidity that is abundant, but currently frozen, and putting it to work in support of Europe’s businesses, and particularly SMEs,” said EU Commissioner Jonathan Hill.

“The free flow of capital was one of the fundamental principles on which the EU was built. More than 50 years on from the Treaty of Rome, let us seize that opportunity to turn that vision into reality.”

Those wishing to contribute to the Green Paper should do so by the 13th May.

 

Related Articles

India-US trade corridor: Accelerating growth with reverse factoring

Deals & Markets India-US trade corridor: Accelerating growth with reverse factoring

3m Vinod Parmar
This week in treasury: Top 10 headlines you should know about

Brexit This week in treasury: Top 10 headlines you should know about

8m Victoria Beckett
GTreasury & Visual Risk announce partnership to focus on integrated treasury and new markets

Asia Pacific GTreasury & Visual Risk announce partnership to focus on integrated treasury and new markets

9m Guest Writer
Insurance M&A plunges in H1

Deals & Markets Insurance M&A plunges in H1

11m Victoria Beckett
Tokyo champions free trade through TPP revival

Asia Pacific Tokyo champions free trade through TPP revival

11m Miha Hribernik
Economies set for highest government debt since 2000: Fitch

Deals & Markets Economies set for highest government debt since 2000: Fitch

11m Victoria Beckett
Finastra launches from Misys-D+H union

Deals & Markets Finastra launches from Misys-D+H union

1y Alara Basul
Finastra becomes third-largest fintech company

Deals & Markets Finastra becomes third-largest fintech company

1y GTNews