Capital Markets Union (CMU) is an initiative from the EU trying to enhance the integration of financing and capital markets in every one of the state members.

One of the goals is to facilitate financing access to SMEs, as the analysis of the European Commission "Small and medium-sized enterprises’ access to finance" (2016) shows that one of the most important issues for many SMEs and Micro European companies is getting access to financing in a proper way. In countries like Spain, most of that financing comes from the local banks and has been restrained for a quite a while during the crisis and later slow recovery.

The paradox is that SMEs are competing in a connected world where everyone can be a multinational and sell all around the planet but the capital markets have been fragmented and usually organized to cover only the local or national areas. The "Juncker Plan" is the visible manifestation of the European Commission to try to help SMEs in that matter by facilitating public and private investments.

And how does it work and what goals does it have? lets see the main areas of work:

  • – Improve financing access to diverse and alternative financing tools including those offered by fintech.
  • – Facilitate the investments and financing for european infraestructures.
  • – Increase opportunities for private and large institutional investments.
  • – Enhance bank credit facilities.
  • – Delete any barrier or issues for real and effective pan-european capital markets.

Put simply, Capital Markets Union will strengthen the link between savings and growth , the CMU aims to "boost retail investments into capital markets and enhance individual confidence and provide better returns for savers and investors "

Lets hope that the idea will become soon a real framework .