If we want a European alternative to Google, Apple, Facebook or Amazon, we need to be able to fund innovation – and banks aren’t typically a good way of doing this.
The Capital Markets Union (CMU) is not a single directive or regulation. It is instead a series of measures that move towards an integrated, better functioning, pan-European capital market. One of its driving motivations is to increase the role of equity financing in the EU. Freedom of movement of capital is one of the famous four pillars which make up the EU Single Market (the others being goods, services and people). Yet, to date, the EU’s capital markets remain siloed within individual Member States, each being managed by a national regulator who either applies different rules, or applies the same rules differently.