The Capital Markets Union is one of Juncker's main goals. But can this risky project even work without the City's involvement?by Diane James / March 2, 2018 / Leave a comment
In 2015 the European Union launched the Capital Markets Union. Designed to strengthen the economic and financial security of the EU, it is one of Commission President Juncker’s main goals.
The CMU is designed to expand the market for borrowing money for businesses by increasing the number of lenders, and introduce less traditional methods of fundraising, such as crowdfunding. Its clearly-stated aim is to make the EU financial system more robust.
In its own words the EU sets out the objectives of the CMU as developing “a more diversified financial system complementing bank financing with deep and developed capital markets, (unlocking) the capital around Europe which is currently frozen and put it to work for the economy, giving savers more investment choices and offering businesses a greater choice of funding at lower costs.”
But one thing is very clear to me: the UK should stay well clear of this project. It will not strengthen the financial markets—rather, it will achieve the absolute opposite and imperil the economy of the whole continent.