The EU capital market legislative framework has been significantly enriched with the two CMU action plans put forward by the Commission (2015 and 2017), which have now mostly been implemented. However, the general feeling is that much remains to be done to achieve the CMU. EU capital markets have not significantly developed or integrated since the launch of the CMU and frustration has been expressed with the protracted adoption process of the CMU 1.0 actions and the watering down of several measures.

The Commission reaffirmed at the end of 2019 its commitment to the CMU and the Council set policy objectives for deepening the CMU related to the funding of SMEs, retail savers, the removal of structural and legal barriers to capital flows, the support to the transition to sustainable economies and digitalisation.

A High Level Forum (HLF) was set up in November 2019 by the Commission to propose a new set of policy measures for achieving these objectives.

An interim report published in February 2019 outlined the key areas of work of the HLF going forward including measures for the financing of businesses, the strengthening of market infrastructure, retail investment, tax and insolvency procedures and supervision. Concrete and targeted policy actions, likely to be game-changers for the CMU, are due to be proposed before the summer, as well as a clear delivery timetable. The HLF has moreover emphasized the importance of an upfront commitment of the EU institutions on a precise package of reforms as a key condition of success of the CMU going forward.

The papers and articles below provide an overall perspective on the CMU. Additional input can be found on the different areas of the CMU (investment funds, SME funding, retail investment, PEPP, market infrastructures, securitisation…) in the recent Eurofi publications (Conference Summaries, Views Magazines, Regulatory Updates).