The Capital Markets Union represents a crucial project for the future economic development of the Eu, especially in this difficult phase for economic growth. Its main objectives are favoring the access to capital markets for European companies, especially the Smes, reducing their cost of capital, while at the same time favoring a green, digital, inclusive and resilient economic recovery. Pursuing an effective capital markets union also requires the improvement of the capital adequacy frameworks of financial institutions – such as Basel 3 and Solvency 2 – with the aim of freeing capital for investments in the real economy, and a better harmonization of prudential regulatory frameworks, favoring, as an example, the gradual realization of a European Insurance Union.
