Active and versatile national capital markets
form the basis for a functioning Single Market
The overall aim of the Capital Markets Union (CMU) action plan is increasing and diversifying the funding sources for businesses, boosting the functioning of markets, and creating jobs, growth and investment in Europe.
The work on a stronger and more integrated capital markets union in the EU must continue. However, the non-regulatory approaches must also be taken into account. FFI believes that the development of functioning and versatile capital markets must be primarily market-driven. Investment decisions or the steering of investment should not be affected through regulatory means.
The CMU should not be established through detailed EU regulation, but instead by taking down unnecessary obstructions that hinder cross-border investments.
The importance of the CMU will only grow in the post-Brexit future, with the London capital market no longer part of the EU. Diversification of funding sources is also in the interests of the Finnish market.
The EU must focus on the creation of a level playing field. It must also secure its own competitiveness.
While banks have a significant role as a source of funding, active and versatile markets need diversified funding sources and a large number of different participants. Especially start-ups and other SMEs’ access to funding must be further developed to foster innovation.