Capital Markets Union: Commission welcomes agreement to give companies easier access to capital markets // Brussels, 8 December 2016 - The agreed text now goes to the European Parliament and the Council of the EU for a final vote.

D. whereas the capital market in the Union remains fragmented; whereas the Capital Markets Union (CMU) potentially offers a valuable framework to safeguard equal access to finance for SMEs throughout the EU and to promote innovative venues for market-based funding; whereas specific shortages of credit to SMEs and micro enterprises derive also from economic instability and a lack of targeted solutions for the real economy; whereas the capital-market-based context in the United States is often cited, but fundamentally differs from the banking-based EU context, and should not be copied or used as a template; whereas the CMU is a chance ...[+++] to strengthen capital markets in the EU as a complement to banking-based finance; whereas in the US, following the financial crisis, bank lending to corporates has developed stronger than capital markets based financing;

D. whereas the capital market in the Union remains fragmented; whereas the Capital Markets Union (CMU) potentially offers a valuable framework to safeguard equal access to finance for SMEs throughout the EU and to promote innovative venues for market-based funding; whereas specific shortages of credit to SMEs and micro enterprises derive also from economic instability and a lack of targeted solutions for the real economy; whereas the capital-market-based context in the United States is often cited, but fundamentally differs from the banking-based EU context, and should not be copied or used as a template; whereas the CMU is a chance ...[+++]to strengthen capital markets in the EU as a complement to banking-based finance; whereas in the US, following the financial crisis, bank lending to corporates has developed stronger than capital markets based financing;

16. Calls on the Commission to establish a European approach to strengthen the diversification of funding sources and investments in European businesses, by means of a CMU that builds upon the characteristics and interdependence of the European banking and capital markets landscape, bearing in mind the specificities of the European model for financing of businesses, and the need to develop reliable non-bank sources of finance for growth and to complement these with ways for market participants to raise debt, equity and venture capital directly from the market; notes that the Commission should not necessarily only rely on peer reviews wi ...[+++]th other jurisdictions; draws the attention of the Commission to the fact that cultural differences should not be disregarded and adequate answers need to be provided in order to overcome them; believes further that the Commission should take the newest technological developments into account in its reforms of the capital markets;

44. Underlines the necessity of fostering an environment where more household and corporate savings flow to vehicles that will invest in capital markets, and where investors are encouraged to allocate capital across the borders of Member States; underlines the necessity of adequate safeguards, especially for households, to ensure full awareness of the advantages and disadvantages of capital market investments; stresses the importance of expanding accessibility to financial education aiming at improving investors’ trust in capital markets, in particular retail investors; also underlines that financial education should be targeted towar ...[+++]ds SMEs, teaching them how to use capital markets;

18. Underlines that the launch of a CMU and the underlying legislation should be targeted at the functioning of capital markets in the entire EU, completing the single market and enhancing sustainable growth; underlines that, following the crisis, steps have been taken regarding supervision of the banking sector that, for the time being, have not been expanded in the capital markets; underlines that differences between financial sectors exist, which make different solutions necessary; stresses, however, that a level playing field among participants must be ensured for similar financing activities and that the key aim for all sectors m ...[+++]ust be to improve capital allocation across the European economy and make better use of capital stocks that remain idle today;