Capital Markets Union The European Commission’s Capital Markets Union (CMU) action plan is a large-scale project which aims at increasing and diversifying the funding sources for businesses, boosting the functioning of markets, and creating jobs, growth and investment in Europe.The action plan includes several separate regulatory and development projects, which seek to improve the availability of financing especially to small and medium-sized businesses.FFI supports the development of the Single Market and the Capital Markets Union. Diversification of funding sources is also in the interests of the Finnish market. The Union should not, however, be established through detailed EU regulation, but instead by taking down unnecessary obstructions that hinder cross-border investments.The Commission has already issued the first legislative proposals related to the CMU. The purpose of the new proposal on securitisation is to provide a framework for a transparent and standardised securitisation process in the EU. The Commission also wants to facilitate the issuance of securities by trimming their prospectus requirements. Long-term and infrastructure investments are supported with the re-evaluation of insurers’ Solvency II framework.In addition to regulatory projects, the Commission has also launched numerous consultations, which will be used as the basis for more detailed plans. Intensive negotiations will be held during 2017‒2018. The ambitious goal of this action plan is to have a fully integrated capital market in the EU area by the year 2019.