EU's Ambitious Push for Capital Markets Union Gains Momentum

The European Union is set to intensify efforts towards establishing a capital markets union, aiming to unlock financial resources for defense and digital-green initiatives. Progress has been hampered by diverse national interests, but a renewed push is anticipated by summer, as announced by European Commission President Ursula von der Leyen.

The European Union is gearing up for a significant advancement towards the establishment of a Capital Markets Union (CMU), according to European Commission President Ursula von der Leyen. Seen as a pivotal move, the CMU is expected to unlock vital funds for defense, as well as digital and green transitions.

Speaking at a joint press conference with the newly elected German Chancellor Friedrich Merz, von der Leyen emphasized the necessity of a deep and liquid functioning capital market for the entire EU. "We have reached a consensus that now is the time to push this topic forward," she stated, noting that substantial progress is anticipated before the summer months.

Efforts to create a CMU have been ongoing for a decade but have faced obstacles due to entrenched national interests and varying financial cultures and regulations across European countries. However, the current political climate suggests a renewed focus and commitment to making significant strides in this area.

(With inputs from agencies.)