Commission proposes new measures to further strengthen the Capital Markets Union and the Banking Union

Today the Commission is presenting a series of measures stemming from the Capital Markets Union and the Banking Union, leading to a stronger and more resilient Economic and Monetary Union.

irst, the Commission is today proposing risk-reduction rules that will allow market-led solutions for the development of sovereign bond-backed securities (SBBS). SBBS would contribute to weakening the link between banks and their home countries. SBBS would, by design, not involve mutualisation of risks and losses among euro area Member States. Instead, these securities would be issued by private institutions as claims on a portfolio of euro-area government bonds. The market-driven development of SBBS will help investors diversify their sovereign exposures and promote financial integration. Full press release, MEMO and factsheet on SBBS are available online. The Commission is today also presenting a series of actions to drive forward the Capital Markets Union (CMU). Following up on the first ever EU Action Plan on Sustainable Finance, the Commission is now coming forward with its first tangible measures to enable the EU financial sector to lead the way to a greener and cleaner economy. More investments will be channelled into sustainable activities thanks to new rules that determine whether an economic activity is environmentally-sustainable or not. These proposals confirm Europe’s commitment to be the global leader in fighting climate change and implement the Paris Agreement. Full press release, MEMO and factsheet on sustainable finance are available online. The Commission is also proposing new rules to give small and medium enterprises (SMEs) better access to financing through public markets. As part of the CMU agenda, today’s initiative should help EU companies to tap market-based funding more easily and cheaply so that they can expand. Full press release and MEMO on SMEs financing are available online. Moreover, the European Commission is today proposing to strengthen EU rules on motor insurance to better protect victims of motor vehicle accidents and improve the rights of insurance policyholders. Today’s proposal will ensure that victims of motor vehicle accidents are protected, even when the insurer is insolvent. Full press release and MEMO on motor insurance are available online.