Investment impulses and capital markets union: EU plans economic policy change

Investment impulses and capital markets union: EU plans economic policy change

The heads of state and government of the EU have committed themselves to adapting the economic policy of the international community to the current challenges. In view of increasing competition from the USA and China and geopolitical tensions, an economic policy change is considered necessary. Chancellor Olaf Scholz emphasized the untapped potential of the internal market and the importance of such a change.

In order not to fall behind global competitors, EU leaders are emphasizing the mobilization of money as the key to investment. It is recognized that Europe needs more resources to invest in key strategic areas and infrastructure. A special report by Enrico Letta highlights the need to mobilize money from individuals and companies, with European savings often flowing abroad.

Heads of state and government are pushing for accelerated development of the Capital Markets Union to open up private capital. In addition, the efficiency of supervision of the capital markets in the EU is to be improved and general financial knowledge is to be strengthened. There is discussion about allowing more state aid to counteract the competitive advantages of companies in China and the USA. There is also a need to cut bureaucracy and reduce the bureaucratic burden on companies and national authorities.