There are new measures from the European Commission (EC) to strengthen the Capital Markets Union (CMU) and the Banking Union (BU). These reforms are intended to develop supervision of financial markets and secure a stable financial institution. EC launched the CMU and the BU action plan with the aim of developing a single market in the EU and its member states for a diverse, more rooted and improved capital market that stimulates better jobs and economic growth.

The action plan has achieved progress in its initial steps in making a strong market for capital in the EU by the end of the commission’s tenure in 2019. The overview of some of the actions listed in the previous action plans are:

Climate change-Using the financial sector for a cleaner and greener economy

Europe has confirmed its commitment to implement the Paris agreement making it as a global leader in the fight for climate change. The EC has mandated the financial body to progress competitiveness in the EU economy and also reduce the effects of climate changes.

The severity of extreme events such as hurricanes, heat waves, and floods, can lower the productivity in an economy leading to financial losses.

Making it Easier for small businesses to acquire financial aid through capital markets

It’s with a welcoming relief for medium and small businesses after the proposal of getting financial access from the capital markets. The alternative from the traditional bank financing will unlock the growth potential for many of these businesses with the benefits of stock exchange listings.

In improving access to the market, the SME’s in the new rule get a new trading category venue on SME Growth Markets that support their listing.