Cookies on Pinsent Masons website

This website uses cookies to allow us to see how the site is used. The cookies cannot identify you. If you continue to use this site we will assume that you are happy with this

If you want to use the sites without cookies or would like to know more, you can do that here.

European Union taking right approach on capital markets union, says CBI

British businesses have welcomed the European Commission's backing for reducing regulations for cross-border investments, the Confederation of British Industry (CBI) said in response to the European Union’s Capital Markets Union (CMU) consultation.19 May 2015

The Commission began consultation on its CMU project in January.

"The Capital Markets Union aims to break down the barriers that are blocking cross-border investments in the EU and preventing businesses from getting access to finance," it said at the time. "If EU venture capital markets were as deep as the US, as much as €90 billion ($102 billion) more in funds would have been available to companies between 2008 and 2013," it said.

"The EU seems to have the right approach with the Capital Markets Union initiative," said Marte Borhaug, the CBI's head of financial services.

"Boosting the availability of capital financing for firms will help propel growth across Europe. It’s now important that this approach becomes the reality - the CMU should be primarily about fostering cooperation among businesses and members states," Borhaug said.

"Focusing on the type of firms that really need to leverage capital markets – the fast growing medium-sized companies – would be a good place to start with this important project," she said.

The CBI sees three priorities for the CMU, it said: initiatives to increase financing options such as private placements and equity finance; attracting investors by showing that European business is a good choice for investment, including by improving credit data on companies; and connecting medium-sized businesses to capital by raising awareness of alternatives and by reducing the burden of prospectus directives on firms seeking capital.

The European Commission has launched a consultation on potential changes to the EU's Prospectus Directive as part of a review aimed at lowering barriers to capital markets, particularly for SMEs.

Recent Financial Services Experience