Whereas the UK was widely considered the leading force of the Capital Market Union (CMU), Theresa May’s speech on (date)… seems to announce serious turbulence ahead. Launched in 2014, the CMU intends to reduce barriers to cross-border investing and promote bond markets instead of bank lending.
Theresa May declared that there will be no “membership of the single market”. Even though she wants "the greatest possible access to the single market" including "the freedom to provide financial services across national borders", she does not seem to be in favour of a pro-active engagement on deepening capital market across Europe. For some, this means that the Capital Market Union could never see the light of day.
Since the banks (which stand to lose from the CMU) have considerable political influence and because politicians will be busy with the Brexit negotiation, the solution lies elsewhere. A CMU rescue operation could come from private stakeholders in the finance industry who could create a “private capital markets union” and ensure the recovery of the European economy.
"Maybe what the politicians are unable to achieve, the private stakeholders in the finance industry will be able to” said Guillaume Prache, managing director of BETTER FINANCE.
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