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BRUSSELS (Reuters) – European Union leaders are seeking “rapid and decisive” progress by the end of the year on a U.S.-style capital market to channel private investment into the bloc’s green and digital economy, according to draft outcomes of an EU summit next week. .
The leaders, who will meet in Brussels on June 27-28, agreed in April on reforms on several fronts to revitalize the EU economy and help it catch up with the United States and China in the global technology race.
An EU capital markets union could be key to achieving this end, but negotiations on it have stalled for nearly a decade because EU members do not want to give up control of national financial rules. EU Finance Ministers have committed to establishing a Communications Management Unit by 2029.
According to the draft conclusions, which could be changed before or during the summit, leaders will call for accelerated work to achieve this goal.
“The European Council looks forward to achieving rapid and decisive progress by the end of the year,” the draft says.
The CMU’s goal is to harmonize laws such as those relating to capital gains tax and bankruptcy in order to create a single capital market, rather than 27 markets, and to persuade households to invest in securities rather than placing their savings in bank accounts.
The European Commission, the EU’s executive arm, says Europe will need 650 billion euros ($695 billion) — about 4.5% of its economy — in additional investment annually until 2030 to compete in the global green and digital transition.
He believes that this can only come from the private sector.
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