Brussels, 28 April 2023
In the margins of the informal Ecofin meeting in Stockholm today, the European Parliament, the current and incoming Presidencies of the Council of the EU and the European Commission renewed their commitment to further integrating and developing the capital markets union (CMU). The joint statement commits to advancing and, where possible, finalising the negotiations on the current legislative proposals before the next elections to the European Parliament in 2024.
Strengthening EU competitiveness is one of the top priorities of the Swedish Presidency, and the CMU is a key component. We have put a lot of effort into advancing CMU-related dossiers and have worked tirelessly to ensure that we make as much progress as possible. The statement today confirms our determination to continue the work to deliver on the capital markets union.
Elisabeth Svantesson, Swedish Minister for finance
The statement published today contains several commitments aimed at accelerating political agreements and making progress in ongoing CMU legislative work. The Commission committed to completing the 2020 Action Plan by presenting three additional legislative proposals. The proposals will seek to foster trust in capital markets and ensure higher retail participation, strengthen access to financial data and simplify cross-border taxation procedures. The ministers and members of the European Parliament committed to regular discussions on CMU initiatives to maintain momentum and ensure swift political agreements.
The statement is signed by Chair of the European Parliament Committee on Economic and Monetary Affairs Irene Tinagli, Ms Svantesson, Swedish Minister for Financial Markets Niklas Wykman, Spanish First Vice-President and Minister for Economy and Digital Transformation Nadia Calviño, Belgian Vice-Prime Minister and Minister of Finance Vincent Van Peteghem, and Commissioner for Financial Services, Financial Stability and Capital Markets Union Mairead McGuinness.
Read the statement on the website of the European Commission.
Source – EU Council (Swedish Presidency)
Capital Markets Union: EU renews commitment to integration and development of capital markets
Brussels, 28 April 2023
During their meeting in Stockholm today, Irene Tinagli, Chair of the Economic and Monetary Affairs Committee of the European Parliament, Elisabeth Svantesson, Swedish Finance Minister, Niklas Wykman, Swedish Minister for financial markets, Nadia Calviño, Spanish First Vice-President and Minister for Economy and Digitalisation, Vincent Van Peteghem, Belgian Vice-Prime Minister and Finance Minister, and Mairead McGuinness, Commissioner for financial services, financial stability and Capital Markets Union discussed the crucial role of EU capital markets in addressing strategic challenges for the EU. Building on the commitment by EU leaders in March, they pledged to finalise work on the legislative proposals in this area before the European Parliament elections in 2024, allowing for decisive and concrete progress on a fully-fledged Capital Markets Union (CMU).
On 23 March 2023, the European Council called for a deepening of the Capital Markets Union and for the co-legislators to complete work on legislative proposals in this area, in order to support the EU’s long-term competitiveness.
We – representatives of the European Parliament, the current and incoming Presidencies of the Council of the EU, and the Commission – are responding to this call with a commitment to finalising these initiatives as quickly as possible, in any case before the end of the current legislative cycle.
The Capital Markets Union was launched in 2015 to establish a genuine single capital market in the EU that would allow investors and companies, large and small, to access a full range of financial services and products, regardless of where they are located. Additional challenges have arisen over the past number of years – the COVID-19 pandemic, the climate and energy crises, increasing geopolitical tensions and the changing economic environment – that have made advancing the CMU even more urgent.
For the EU to stay globally competitive over the long-term, we need significant amounts of private-sector financing to support innovative fast-growing companies seeking financing, in particular in strategic industrial sectors such as clean technologies. Moreover, developed capital markets are essential to complement public funding to finance the twin green and digital transitions. The EU has high levels of savings which could be channeled towards our green and more sustainable future. Our banking system, however, cannot do it alone.
This year is the 30th anniversary of the Single Market, which has successfully integrated Member States’ economies to an extent many thought impossible thirty years ago. But there is more potential to unlock – which we can do by integrating our capital markets.
We need a renewed push towards a genuine EU-wide single capital market, by completing the initiatives that have been set out as fast as possible.
The European Commission has almost completed all the actions set out in the 2020 CMU Action Plan by presenting 7 initiatives which are currently under negotiation by lawmakers. Now this work must be finalised by the Council of the European Union and the European Parliament.
Furthermore, the Commission will complete its 2020 Action Plan by presenting 3 additional legislative proposals in the coming weeks to foster trust and investment by retail investors in capital markets, to accelerate data access in finance, and to simplify cross-border taxation procedures for investment.
Strong cooperation between all institutional actors and stakeholders is vital to advance on the CMU. We commit to regular discussions on CMU initiatives with Ministers and Members of the European Parliament to keep the momentum going and to facilitate swift political agreements.
Now is the time to push forward the Capital Markets Union with ambition and speed. We cannot afford to wait. As representatives of the European Parliament, Member States and the European Commission, we will show political courage and determination to conclude legislative work on all the outstanding CMU legislative proposals.