Move to boost capital markets

The first steps in enlarging and creating genuine cross-border capital markets in the EU were announced by the Euroepan Commission with the potential to raise an additional €90bn of funds for business.

Companies have traditionally relied on banks in Europe while the emphasis has been on raising funds from the markets including pension, wealth and other funds.

But with new investment by banks in the EU down by 40% since the crisis in 2008, the EU has identified a capital markets union as one way of boosting demand and growth, and contributing to the faltering single union.