HoL EEFAS welcomes CMU: HoL EEFAS has issued a report welcoming the Commission's proposals with regards the establishment of a Capital Markets Union (CMU). Findings of the report include:

  • CMU could help to stimulate growth across the EU by providing access to more diverse funding sources. However, cross-border capital for infrastructure and long-term investment needs to be unlocked;
  • the Commission must strike a balance between ensuring increased SME access to funding and protecting consumers and investors;
  • the Commission must take note of the specific characteristics of each element of the EU's capital market and the range of needs and priorities of different Member States;
  • the Commission's proposals must be "road-tested" through intensive Impact Assessments; and
  • the UK should use its expertise and share best practice with other Member States.

The report broadly supports the Commission’s proposals, finding that CMU is a timely and important initiative, but warns that it must be rolled out carefully. However, it also finds the initiative is unlikely to benefit all SMEs. It advises that the EU should learn from the US example of the effective use of capital markets as a source of finance. Currently, in the US, 80% of capital funding comes from capital markets and 20% from banks, whereas the reverse is true in the EU. (Source: Capital Markets Union: a Welcome Start)

Select Committee notes further work on Grabiner review: The Commons Select Committee has noted a number of questions it says the next Parliament should follow up stemming from Lord Grabiner's review. It wants further investigation, particularly into whether the terms of reference for the reviews were appropriate. (Source: Select Committee Notes Further Work on Grabiner Review)