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Finance

Finance

One of the key projects that European institutions wish to promote this year is the Capital Markets Union. This project takes in several initiatives, such as promoting investment in insurance company infrastructures and simplifying the brochures that companies publish in order to be financed in the capital market. However, the proposal most talked about is that of making changes to legislation in order to relaunch the high-quality securitization market in Europe.

Markets across the globe surged after Mario Draghi’s words. Yesterday, the Chairman of the European Central Bank (ECB) hinted at the possibility of stepping up the stimulus program as early as March, after holding the governing board meeting in Frankfurt. However, the ECB decided to hold back for the time being, making no significant announcements and meeting expectations.

The European Commission wants to promote one of its flagship initiatives as far as financial markets are concerned: the creation of a unified European capital market. The aim of the Capital Markets Union is to facilitate access to funding for small and medium enterprises and to remove barriers blocking cross-border investments in the EU. One of the measures that is already being worked on is the modernization of the directive regulating the contents of the prospectuses that European companies have to publish if they want to be financed in the capital market. After consulting with the public last February, the European Commission launched a proposal on the reform of this directive in November.