What is the Capital Markets Union? EU’s plan to attract investment explained

The EU is seeking a cash pile to fund its growth - but the road to establishing a united strategy on raising capital has not been smooth sailing

Initially proposed in 2015, the idea for the CMU was revived during the pandemic with a new focus on raising cash for green and digital projects, alongside a new €750 billion EU rescue fund. Picture: Getty

The EU is on the hunt for trillions of euros to pay for clean energy, tech upgrades and new defence capabilities, but public money is in short supply. Can stocks, bonds and venture capitalists fill the gap?

What is the capital markets union?

In 2015, then-European Commission chief Jean-Claude Juncker’s team launched the capital markets union (CMU) as part of a wider investment plan for Europe. It was touted as an alternative to bank loans ...