European finance Ministers are expected to adopt the EU Council conclusions on Thursday 5 December calling for a new roadmap to deepen the Capital Markets Union (CMU).
The subject was already discussed at the informal meeting of the Economic and Financial Affairs Council (ECOFIN) last September in Helsinki (see EUROPE 12327/3). In the meantime, the discussions were informed by the publication of the High Level Group on CMU’s report, set up by France, Germany and the Netherlands (see EUROPE 12345/12).
The draft text, dated 25 November, of which EUROPE received a copy, sets out work objectives for the High Level Forum on the CMU, recently set up by the Commission (see EUROPE 12371/25).
“Despite the measures taken so far, EU capital markets are not yet fully integrated. They are underdeveloped in some Member States and lag behind when compared to certain non-EU jurisdictions”, it says.
The EU Council concludes that the CMU should be strengthened and that, therefore, a roadmap is needed to enable the establishment of “integrated, effective and sustainable capital markets”.
The text also identifies the principles that should underpin the deepening of the CMU, including: - improved access to finance for European companies and especially SMEs; - identify and remove barriers to the efficient functioning of the CMU and to increase cross-border capital flows; - provide incentives to enable well-informed retail savers to invest in capital markets; - support the transition to a sustainable economy; - strengthen the global competitiveness of capital markets.
It should be noted that the text emphasises that the opportunities stemming from technological progress should be embraced, while taking into account the risks. It also specifies that a European and, if possible, a global approach on cryptoassets, including stable coins (see EUROPE 12375/25), is expected. The Commission is also invited to evaluate the measures outlined in the annex. These include, for example, the introduction of new categories of professional investors, the promotion of green bonds, both at national and EU level, and the development of a European non-financial reporting standard paying particular attention to climate information.
Finally, the text invites the Commission to consult closely with Member States in the course of its work, and to report annually on progress made, based on key performance indicators. (Original version in French by Marion Fontana)