Fund management industry body EFAMA says Europe has reached a “milestone” with the adoption of a new capital markets union (CMU) Action Plan by the European Commission, which hopes to remove the remaining obstacles to cross-border investments.
Building on the recommendations of the CMU High-Level Forum, the new plan contains 16 actions, which EFAMA says are largely welcomed by its members.
The industry body states that its members stand “ready to play their part in turning it into reality” by contributing to the relevant workstreams announced by the European Commission.
The new plan will also need “strong political commitment from the European Parliament and Member States” in order to deliver on its objectives.
EFAMA flags efforts to increase household participation in capital markets as a particular area that requires political support, since “a lot remains to be done” to achieve this goal, which is essential for the long-term success of the CMU.
“These actions will only be effective if Member States concomitantly take appropriate measures in the areas of taxation, pension policies and financial education,” writes the industry body. “EFAMA would recommend the European Commission to develop a dashboard comprising Key Performance Indicators to measure progress made at national level to foster retail investments in capital markets and support the future financial well-being of European citizens.”
