Flashnews: CMU 2 new action plan


The European Commission has published on the 24th of September 2020 a new action plan aiming to strengthen in the years to come the European Capital Market Union (CMU).

This action plan is based on the same findings as the ones that led to the implementation of the first phase of the CMU starting in 2015, ie considerable needs in terms of financing which cannot been met by the sole banking sector, but also correlatively huge needs in terms of savings and yield. Those initial findings have obviously been updated in order to take into account recent developments that have dramatically modified the context: the need to restore the European economy in the wake of the current pandemic, to react to the climatic situation and to lead the development of digital initiatives, but also to adapt to the Brexit having in mind that the UK  financial market is the most important in Europe.

In order to succeed, the European Commission proposes 16 legislative and non-legislative measures to be adopted in a short time frame: in the main, they should be passed by beginning of next year and before the end of 2022. They are fourfold: financing the economy, market infrastructures, involvement of investors and removal of the barriers to cross border investments. Some were already part of the first phase of CMU and are revisited.

Those different measures draw on the work led by a panel of experts designated in October 2019 by the European Commission itself, the CMU high level forum or HLF, but also on the answers to the consultation that has followed its publication in June 2020.

See : https://ec.europa.eu/commission/presscorner/detail/en/IP_20_1677

Useful links:

25 September 2020: Article New measures on digital finance
23 September 2020 : Article AIFMD Review: the process is ongoing
03 September 2020 : Article The settlement disciplines regime (CSDR): A likely short-lived date
26 August 2020: Article The settlement disciplines regime (CSDR): A likely short-lived date
28 July 2020: Article CSDR: Could the implementation of the future settlement discipline regime be pushed back by a year?
03 July 2020: Podcast CSDR: Get ready