Capital Markets Union

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With the Capital Markets Union ( Engl. : Capital Markets Union abbreviation: CMU ) is in a deepening of capital markets Union Member States of the EU planned. The concrete impetus for the implementation came from the speech of the President of the Commission Jean-Claude Juncker at the opening of the plenary session of the European Parliament " A new start for Europe: My agenda for jobs, growth, fairness and democratic change - Political guidelines for the next European Commission " .

The Capital Markets Union is intended to deepen and expand the free movement of capital , one of the four fundamental freedoms of the European internal market , since the progress made so far is " still fragmented and predominantly nationally oriented ".

aims

The Capital Markets Union aims to create a real single capital market. Six main goals are defined for this:

  1. Removing obstacles;
  2. Improving access to finance
  3. Diversification of financing options;
  4. Facilitated raising of capital for SMEs ;
  5. Making the EU more attractive to investments from all over the world;
  6. thereby increasing economic growth and job creation in the EU.

It is therefore a key objective to remove barriers for companies to access capital. In particular, access to finance, especially with regard to the provision of equity and risk capital, is to be improved. The first steps in this regard were taken with a view to securitization and a revision of the Prospectus Directive , for which purpose special consultations on the revision with the participation of the European public (in particular also EU citizens ) were started in February 2015 .

It is also a declared aim to enable small and medium-sized enterprises (SMEs) to use more sources of finance. In particular, the strong dependence on national banks in the EU member states is to be reduced and cross-border financing to be strengthened ( diversification ). This is because almost 13% of the financing applications from SMEs are rejected by the banks, " often because, even if they are profitable, they do not correspond to the risk profile desired by the banks ".

The basis for these goals for an “ integrated, well-regulated, transparent and liquid capital markets union ” is to be created by 2019. On September 30, 2015, the Commission published, as planned, an action plan with concrete measures to create a Capital Markets Union, which aims to remove obstacles that prevent cross-border investments in the EU and currently make it even more difficult for companies to access finance. The Commission's approach of building this Capital Markets Union largely on securitisations , as the action plan provides as a priority, may prove problematic . This is because securitisations were already at the center of the US real estate crisis and thus the current financial crisis that was developing from it .

Measures from 2015

The Commission already planned a number of measures in 2015 and specified the general direction through which the path to the goals of realizing the Capital Markets Union should be initiated:

  • Presentation of the Commission's Action Plan of 30 September 2015 for a Capital Markets Union,
  • Proposal for two new regulations on loan securitization (see also: securitization regulation ),
  • Adaptation of the Solvency II Directive (Solvency II Directive),
  • public consultations on venture capital and social entrepreneurship funds and
  • public consultations on covered bonds
  • Exploring an EU legal framework for financial services,
  • Planned review of the prospectus directive,
  • Planned proposal for a directive to reduce barriers to listing small businesses on the stock and bond markets,
  • Green Paper on Consumer Financial Services.

Institutional establishment

EU Commissioner for the Capital Markets Union (Unit C1 - Capital Markets Union) in the Juncker Commission was Jonathan Hill until the Brexit referendum . He then resigned and Valdis Dombrovskis took over the role in addition to his existing role as Commissioner for the Euro.

criticism

The plans for a European Capital Markets Union have not only met with positive feedback. The statement in the EU presidential report that a Capital Markets Union would contribute to financial market stability, create growth and prevent crises is incorrect. In fact, the plans would bring a strengthening of speculation and short-term profit orientation and above all would benefit large banks. “Stability and sustainable growth cannot be achieved through further liberalization of the financial markets” .

Web links

Individual evidence

  1. ↑ p. 7: “ In time, I believe, we should complete the new European banking rules with a capital markets union. To improve the financing of our economy, we should continue to develop and integrate capital markets. This would make raising capital cheaper, especially for SMEs, and help reduce our very high dependence on bank financing. This would also make Europe more attractive as an investment location "and p. 21:" We have to complete the new European banking regulations with a capital markets union. To improve the financing of our economy, we should continue to develop and integrate capital markets. This would make raising capital cheaper, especially for small and medium-sized enterprises . "
  2. ↑ Green Paper on the Creation of a Capital Markets Union, p. 4.
  3. ↑ Aims of the Capital Markets Union (European Commission).
  4. ↑ Employment and growth is also described as the top priority of the Commission in the Green Paper on the Creation of a Capital Markets Union, p. 2 (foreword).
  5. ↑ See for example the statements in the press release of the European Commission of January 28, 2015.
  6. ↑ Green Paper on the Creation of a Capital Markets Union, p. 9 ff.
  7. ↑ See: public consultation for simple, transparent and standardized securitization and Green Paper on the creation of a capital markets union, p. 11 f.
  8. ↑ See: public consultation on the revision of the Prospectus Directive
  9. ↑ See also: Communication of February 18, 2015 from the Commission : “ New capital for Europe's growth - European Commission launches consultation on Capital Markets Union ”.
  10. ↑ See the explanations in the press release of the European Commission of January 28, 2015 and the website of the Commission on the Capital Markets Union and Capital Markets and SMEs in the EU (European Commission).
  11. ↑ Green Paper on the Creation of a Capital Markets Union, p. 15.
  12. ↑ Green Paper on the Creation of a Capital Markets Union, p. 31.
  13. ↑ See Annual Economic Report 2009 (p. 20) of the German Federal Government, here following the report of the Expert Council on the assessment of the macroeconomic development .
  14. ↑ Action plan .
  15. ↑ COM (2015) 472 and COM (2015) 473 .
  16. ↑ C (2015) 6588/2 (only in English).
  17. ↑ public consultation .
  18. ↑ public consultation .
  19. ^ Exploring the EU legal framework for financial services .
  20. ↑ Engelbert Stockhammer, Severin Reissl: EUROPEAN CAPITAL MARKET UNION - A STEP IN THE WRONG DIRECTION , blog.arbeit-Wirtschaft.at, January 14, 2016.