Today, during the launch ECN together with AFME and other stakeholders has launched a new report: “Capital Market Union – Measuring progress and planning for success”. Following the European Commission’s CMU Action Plan launched in 2015, the report provides market participants, policymakers and other stakeholders with key EU and Member State facts about its progress and sets the ground for further developments of CMU project.
As stated in the report “This first in a series of annual reports presents an analytical framework and structured approach for tracking the success of the CMU project in delivering a deeper and more integrated capital market, as well as providing an industry perspective on some of the challenges and barriers that impede its development.
Seven Key Performance Indicators (KPI) have been constructed in the form of composite indicators and ratios to assess progress across the seven political priorities of the CMU Action Plan. These indicators are summarised below, alongside the respective CMU priority they seek to address.
- Market Finance Indicator: how easy it is for companies to enter & raise capital on public markets;
- Household Market Investment Indicator: to what extent retail investment is being fostered;
- Loan Transfer Indicator: to what extent banking capacity is supporting the wider economy [through securitisation, covered bonds or loan portfolio disposals];
- Sustainable Finance Indicator: to what extent long-term investments in infrastructure and sustainable investment are being made;
- Pre-IPO Risk Capital indicator: how well start-ups and non-listed companies can access finance for innovation;
- Cross-border Finance Indicator: to what extent cross-border investment is being facilitated;
- Market Depth Indicator: measuring the capacity of EU capital markets.
For each of the seven indicators, we have quantified progress at the EU and Member State level and compared this with nonEU countries where data is available. We hope that the EU and specific Member State indicators will help policymakers and stakeholders to quantitatively monitor progress, year after year, and become a valuable tool to evaluate the importance of building a European Capital Markets Union.”
This is not the first time when ECN joins forces with AFME. In February 2017, we have collaborated on the creation of the report “The Shortage of Risk Capital for Europe’s High Growth Businesses”.