Capital markets

The capital markets union is the EU’s initiative to get investment and savings flowing across all member states.

The aim is to create a single market for capital and make European capital markets an even safer place to invest in.

Visual representation of capital flows in the EU, showing connections between households, businesses, financial institutions and government entities across Europe

Deepening the EU's capital markets

European capital markets remain fragmented, thus depriving businesses and citizens of the benefits of competitive and reliable sources of funding and investment.

Open and well-functioning capital markets are essential to finance the future. They support the EU’s economic growth and its strategic autonomy and are channelling funds to the green and digital transitions.

Capital markets union explained

What the EU is doing to further develop its capital markets

Better connect companies and investors.

Open up investment opportunities for retail investors.

Enhance market transparency and lower administrative burdens.

Increase the EU's global competitiveness.

Improve companies' access to funding and ensure investor protection.

Empower citizens through financial literacy.

The EU has brought about various legislative measures to further develop and integrate European capital markets. They have been introduced in successive packages and initiatives that tackle different areas of the single market for capital.

History of building a capital markets union

Efforts to put in place a single market for capital started with the Treaty of Rome more than 60 years ago. Work in this area intensified in the 1990s and 2000s, with the free movement of capital becoming one of the four fundamental freedoms of the single market in 1992.

1958

Treaty of Rome

Initial efforts to put in place a single market for capital.
1992

Maastricht Treaty

Enshrines the free movement of capital as one of the four fundamental freedoms of the single market.
1999

Introduction of the euro
1999

Financial Service Action Plan

First comprehensive effort to create a single market for financial services.
2015

Launch of the initiative to build a capital markets union (CMU)

The first CMU action plan includes measures to create a truly integrated single market for capital by 2019.
2020

CMU action plan

The next building block in the EU’s attempt to build a single market for capital.
2021

First capital markets union package

Contains measures to ensure better data access, and revamped investment rules.
2021

Capital markets recovery package

Contains targeted amendments to facilitate the recapitalisation of EU companies on financial markets in the wake of the COVID-19 crisis.
2022

Second capital markets union package

Brings about legislative proposals on clearing services, insolvency and listing rules.

The future of European capital markets

In line with the EU’s position as the world’s largest single market, most of the proposed measures have been adopted. Even so, more needs to be done to create a thriving European capital markets ecosystem.

The Eurogroup has identified what needs to be done to complement ongoing legislative work in order to build a capital markets union.