BRUSSELS (Reuters) – European Union leaders will seek “swift and decisive” progress by the end of the year on American-style capital markets to channel private investment into the bloc’s green and digital economy, according to draft conclusions from an EU summit next week. .
The leaders, who will meet in Brussels on June 27-28, agreed in April on reforms on several fronts to revive the EU economy and help it catch up with the United States and China in the global technology race.
The EU’s Capital Markets Union (CMU) could be key to this, but negotiations on it have stalled for almost a decade as EU members are reluctant to give up control of national financial rules. EU finance ministers have committed to creating a CMU by 2029.
According to the draft conclusions, which are subject to change before or during the summit, leaders will call for accelerated work towards this goal.
“The European Council hopes for rapid and decisive progress by the end of the year,” the draft says.
The CMU aims to harmonize laws such as capital gains tax and bankruptcy to create a single capital market instead of 27, and to persuade households to invest in securities rather than putting their savings in bank accounts.
The European Commission, the EU’s executive arm, says Europe will need 650 billion euros ($695 billion) – about 4.5% of its economy – in additional investment a year until 2030 to compete in the global green and digital transition.
This, he argues, can only come from the private sector.
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