CMU: European Commission accelerates timetable for Capital Markets Union

​The European Commission (the Commission) has announced an accelerated timetable for completion of Capital Markets Union (CMU).

On 14 September 2016, the Commission published its Communication “Capital Markets Union - Accelerating Reform”. The Communication calls on the European Parliament and Member States to “do everything within their power” to implement the objectives of the CMU Action Plan as soon as possible so that CMU can make a tangible impact in Member States.

The Communication calls for a swift completion of the priority measures highlighted in the CMU Action Plan. In particular:

Acceleration of next phase of reform

The Commission wishes to take forward rapidly the next phase of CMU objectives and has identified the following areas where existing differing regimes in Member States are viewed as creating barriers to the development of the capital markets:

  • insolvency, and
  • tax.

The Commission also plans to amend Solvency II Delegated Act by the end of 2016 to benefit small and medium sized enterprises (SMEs).

The Communication lists a detailed and varied list of further topics where the Commission intends to develop further priorities to support the development of CMU including personal pensions, covered bonds and the role of technology in the capital markets.

The Commission has also published a Questions and Answers document and has updated the timetable for the implementation of the existing objectives of CMU.


The Communication was published almost a year after the publication of the CMU Action Plan. The past year has been one of uncertainty for the European Union, primarily due to the Brexit vote. The current economic and political conditions appear to have encouraged the Commission to advance the CMU project at an increased speed and encompassing an increasingly wider number of areas.

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