Action Plan on Capital Markets Union (Communication)
The Commission wants to strengthen the internal EU market for capital by 2019. It therefore presents a detailed Action Plan to achieve this aim. It is planning to establish criteria for lending by certain investment funds and to reduce the capital requirements for infrastructure investment. It also wants to revive the European securitisation market and streamline prospectus obligations.
Removing obstacles to the free movement of capital across borders increases efficiency, strengthens competition and boosts the potential for growth. EU rules on whether and under what circumstances investment funds – particularly AIFs – are permitted to grant loans, are imperative. They make regulatory arbitrage between investment funds and banks more difficult. Promoting infrastructure investment by lowering the capital requirements for insurance companies and banks is risky. A label for "simple, transparent and standardised" securitisations may increase confidence in the securitisation markets.