The Capital Markets Union (CMU) has been central to the EU’s strategy to enhance cross-border capital flows and deepen financial market integration since 2016. European’s capital markets however develop much slower than those in other world economies. A revision of the CMU objectives and targets is urgently needed to revitalise Europe’s capital markets. The European Association of Cooperative Banks (EACB) is therefore receptive to current reflections on the design of a comprehensive "Savings and Investment Union" (SIU) aimed at attracting investments, strengthening market competitiveness, empowering citizens and local economies to promote the participation of retail investors.
Against this background, the EACB believes that in developing the SIU the following aspects should be considered:
- Developing Investor Demand-Side, Enhancing Existing Instruments and collaborating with industry stakeholders – such as by optimizing existing investment tools, such as the European Long-Term Investment Fund (ELTIF)and keeping an open dialogue with industry stakeholders;
- The promotion of financial education to foster market participation and financial inclusion;
- Enhancing EU Capital Markets’ Regulatory framework through simplification: less is more;
- Rethinking Investor Protection’s rules by balancing safety with simplicity;
- Ensuring Legislative Consistency and Minimizing Legislative Revisions;
- Aligning Capital Markets Initiatives with Bank Financing, which should be complementary to meet the funding needs of local economies;
- Improving the Securitisation Framework and Exploring the Potential of a European Secured Note (ESN);
- Boosting Equity Finance;
- Tackling Tax-Related Barriers;
- Enhancing Access to Long-Term Investment Instruments;
- Harnessing EU Guarantees to support European financing efforts.
To learn more about our key messages and recommendations, please read our detailed position paper.