Capital Markets Union: main goal is to finance real economy

Capital markets and traditional financing channels must better serve small business sector and investors

"The main goal of the planned Capital Markets Union is to help finance the real economy, in particular small and medium-sized enterprises, and to encourage new entrepreneurship", said Burkhard Balz MEP, EPP Group Spokesman in the European Parliament's Committee on Economic and Monetary Affairs. "This is our criteria that the European Commission's plan for a Capital Markets Union has to satisfy", he added.

The EPP Group also welcomed today's law proposal for rules on transparent securitisation. "The new rules must allow a broader diversification of funding sources and distribution of risks. We want banks to lend more to SMEs", Balz said.

We do not want to Americanise businesses' access to finance. Burkhard Balz MEP

At the same time, Balz warned against copy-pasting US ideas. "Bank credits will continue to have a central role in Europe. We do not want to Americanise businesses' access to finance. But both capital markets and traditional financing channels must better serve the small business sector and investors", he explained.

Balz also called for speeding up the subsequent steps of the Capital Markets Union. "The desired results will not be reached if we act at a snail's pace. We also need to better connect the financing of investment projects across the EU, make capital markets stable and increase competition", the EPP Group Member concluded.