LONDON (Reuters) - The European Union’s executive will propose “radical” changes to make listing on stock markets cheaper, consider pan-EU pension products, and streamline the bloc’s patchwork of insolvency rules, an EU document showed on Thursday.
The European Commission’s financial services chief Jonathan Hill is planning a “capital markets union” or CMU to aid markets to raise more funds for economic growth.
The document, written by Hill’s officials, sets out elements that are set to be included in his CMU “action plan”, due to be published on Sept. 30.
The EU executive will propose a “radical modernization” of the bloc’s rules on the prospectus a firm must publish to attract investors to make a stock market listing “less costly”.
The executive will also “launch work on the development of a blueprint for the creation of a pan-European market for private pension products”.
The action plan also contains moves to remove remaining national barriers to a “fully efficient” mutual funds market in Europe.
Some elements tackle issues which have been languishing for years due to their political sensitivity, such as tax and insolvency regimes.
“The Commission has begun preparatory work with the
intention to put in place a minimum harmonization directive focusing on specific aspects of insolvency,” the document said.
“Subject to further analysis and consultation, a legislative proposal focusing on specific aspects of insolvency could be envisaged for next year, based on commonly agreed principles and
minimum rules which would reduce the differences between national insolvency regimes while strengthening weaker regimes.”
Reporting by Huw Jones, editing by Carolyn Cohn