The High Level Forum on the Capital Markets Union (CMU), set up by the European Commission last October (see EUROPE 12346/26), is expected to publish its interim report next week, before issuing its final policy recommendations by the end of May 2020.
According to the draft text, obtained by EUROPE, one should not expect a list of concrete actions, but rather a presentation of the “new vision” of the CMU that will guide the future work of the forum.
The draft report begins by identifying the challenges that require immediate action to support the development of capital markets. It stresses that the CMU must strengthen its resilience through a healthier financial structure, foster economic competitiveness and growth by providing more adequate sources of financing for innovation, and promote economic transition by channelling private investment towards more sustainable goals.
The text pays particular attention to the needs of citizens. It lists the ways in which CMU can respond, such as ensuring adequate retirement income, which would enable them to make informed investment decisions, and creating an ecosystem that fosters entrepreneurship.
“To show global leadership, the EU needs to reinvent itself to become a more attractive marketplace for business and investors alike, to compete successfully with third countries and continue setting the global agenda”, it reads.
To achieve this objective, the draft report recommends that Member States speak with one voice on the world stage, develop the international role of the euro and play a leading role in sustainable investment.
Three categories of measures
To complement the CMU, the Forum believes that a “comprehensive set of measures must be put forward and implemented through a staged approach”.
According to the draft report, these measures can be classified into three categories according to their nature. First of all, there are the measures that need to be harmonised in order to be effective and to guarantee citizens and businesses equal access to capital markets and the resulting equal opportunities, irrespective of location or nationality.
Then there are measures that can promote healthier competition between market operators. Strengthening Europe’s competitiveness will require a rethink of the architecture of capital markets. And this in turn will require structural changes that can influence the behaviour and business models of market players, warn Forum members.
Finally, the last category of measures are those that are likely to respond to societal changes, such as climate and technological developments. (Original version in French by Marion Fontana)