How to continue CMU

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As the von der Leyen Commission reflects on how to strengthen market finance in Europe, global markets are moving on. While the first five years of the Capital Markets Union (CMU) have underlined the necessity of the project, and some new rules have been introduced, no significant change has occurred in market financing. European capital markets remain very fragmented, the participation of retail investors through funds is still limited and hindered by high costs, and the attractiveness for start-ups has not increased. These inefficiencies place Europe at an increasing disadvantage compared to other international markets.

CMU’s future depends on a clear plan to achieve more European market finance. Whether this will emerge or not, it remains to be seen. But time is running out.

Karel Lannno is General Manager of ECMI and CEO of CEPS.