Changes from report parliamentary committee draft to plenary report

Added36. Welcomes the recent adoption of the Listing Act, which will make it easier for companies of all sizes, including SMEs, to list on European stock exchanges; underlines that the Listing Act’s Level 2 provisions should contribute to a more accessible and cost-effective listing environment across the Union;

Added37. Calls on the Commission to address the fragmentation of national insolvency frameworks and to establish effective mechanisms for resolving cross-border disputes; underlines that greater legal convergence and procedural clarity are essential to reduce barriers to cross-border investment and to support deeper integration of EU capital markets;

Added38. Remains committed both to achieving the overall objectives of the sustainable finance framework and to mobilising public and private investments in the transitions; recalls that revenues from the Emissions Trading System will be key to supporting investments for climate- and energy-related purposes under the budgets of both the Member States and the Union; takes notes that the Commission reasserted its ambition to remain the global leader in sustainable finance at the start of its current term; notes that the Commission is currently critically assessing all elements of the sustainable finance framework and might come forward with simplification proposals;

Added39. Calls on the Commission to adopt a proposal for reviewing the Sustainable Finance Disclosure Regulation (SFDR), including addressing greenwashing risks;

Added40. Stresses that high energy prices negatively impact EU competitiveness; welcomes, in this regard, the proposal made in the Draghi report; calls for the application of the ‘same activity same rule’ principle and for a review of the ancillary activity exemption that enables non-financial companies to trade on energy derivatives markets without being subject to the same scrutiny as financial entities;

Added41. Highlights that companies that access capital markets experience significant growth, as this enables them to fund their expansion, innovation and development projects; contends that by obtaining resources from a broader base of investors, these companies can diversify their funding sources; believes that stimulating initial public offerings (IPOs) is essential for the growth of European businesses and the further integration of EU capital markets; calls for the implementation of measures that reduce regulatory barriers and enhance access to capital, ensuring that SMEs can easily access capital markets without excessive costs or complexity;

Added42. Fears that without a clear and coordinated strategy, the number of IPOs in the EU will remain limited, hindering the growth potential of European companies and reducing the attractiveness of EU markets for global investors;

Added43. Recalls that EU regulations, such as the Prospectus Regulation and MiFID II, have made strides in improving transparency and market efficiency, although more can be done to streamline processes for companies looking to go public; highlights the need for further harmonisation of market practices across Member States to create a truly single capital market; defends the application at EU level of best practices;

Added44. Notes that the Union’s current tax framework, with 27 different corporate tax systems, can create barriers to businesses and cross-border investment in the internal market; believes that innovative companies could benefit from a single set of EU-wide rules, where relevant, and common practices; notes, in that regard, the ‘Business in Europe: framework for income taxation’ proposal establishing a single set of rules for calculating companies’ corporate tax bases; recalls that several legislative initiatives in the field of taxation are still on hold and that it is important to guarantee certainty, predictability and stability; takes note of the Commission’s clarifications of which initiatives are to be withdrawn in the field of taxation;

Added45. Recalls that most taxation matters fall within the national competence of the Member States; stresses, however, that a more coordinated framework for corporate taxation could help to cut compliance costs and reduce the administrative burden, and also to create a level playing field for businesses operating across the internal market, encourage expansion, enhance legal certainty and stimulate investments and growth in the Union; urges the Member States to speed up negotiations on depreciation rules, in particular; invites the Commission to explore and assess the benefits and drawbacks of the option of the 28th regime;

Added46. Calls on the Commission to implement measures that incentivise both domestic and external investors to participate in European capital markets; calls on the Commission to provide technical support to Member States in designing and implementing tax policies that encourage investment;

Added47. Takes note of the Draghi report’s recommendation to provide tax incentives in support of developing strategic sectors; considers that tax incentives linked to investment products should prioritise investments made in Europe to support European competitiveness;

Added48. Welcomes, as a first step and to reduce the complexity and fragmentation of the internal market, guidelines from the Commission on the design of tax incentives, while respecting the national competences of Member States;

Added49. Calls on the Commission to address existing barriers to cross-border retail investments, such as overly complicated procedures to recoup withholding taxes and the lack of EU-wide minimum standards for general shareholders’ meetings;

Added50. Underlines that capital market integration is a necessary pillar of the Union’s investment strategy, which can, where efficient, be complemented by carefully designed incentives on long-term products to maximise impact;

Added51. Calls on the Commission to develop proposals aimed at facilitating the channelling of savings via long-term saving products to productive investments, building on national experiences that have demonstrated strong retail uptake; asks the Commission to explore solutions and study ideas such as creating an EU investment savings account that would be accessible to all EU citizens or a label at EU level for investment products suitable for retail investors on the basis of common criteria or features such as ‘non-complex products’, proportionate costs, a long-term investment focus, asset allocation and risk mitigation techniques; urges the Commission to introduce a simplified and streamlined advice segment or guided execution only segment for products labelled as basic and simple; asks, in particular, that the Commission assess the added value and effectiveness of, and the appetite of companies and citizens for, a label for investments that offer reward opportunities for investors globally or that are sustainable and mostly located in the EU (Invest or Made In Europe label); stresses that such an initiative should aim to generate additional savings while safeguarding, and where possible enhancing, the diversity of products, distributors and market structures across the Union; notes that some Member States are moving forward with a ‘Europe of the willing’; urges the Commission and the Member States to be as ambitious as possible and to move forward as a bloc;

Added52. Takes note of the launch of the ‘Finance Europe’ European Long-Term Savings label by seven Member States in association with their national financial industries; notes that the criteria for such a label include a portfolio allocation in which at least 70 % of assets are invested in European companies, a minimum investment duration of five years, a substantial part invested in equity and possibly nationally designed tax incentives;

Added53. Recalls that existing pan-European products, such as European long-term investment funds (ELTIFs) and pan-European personal pension products (PEPPs), have so far had difficulties gaining meaningful traction among retail investors; acknowledges ongoing reforms aimed at enhancing their appeal, but stresses that experience shows that regulatory design alone is insufficient to drive uptake;

Added54. Stresses that strong consumer protection is essential to foster trust and boost participation in European investment products; underlines the need for clear disclosures, transparent and low fee structures, access to basic financial services to promote financial inclusion, robust regulation of digital tools such as artificial intelligence (AI) deployed by financial institutions when selling and providing advice on European financial products and robust regulation and standardisation of financial products, complemented by targeted financial education initiatives;

Added55. Urges the Commission to support the development of a European Capital Markets Union Index Family based on data that will be made available under the future EU-wide Consolidated Tape, which would give greater visibility to smaller and less liquid national markets in the EU and allow European citizens to easily invest in mid- and small-cap equities across all EU Member States; considers that this index family should cover all publicly listed stocks in the EU and should allow sub-indices for individual countries, regions and sectors to meet the diverse needs of investors, issuers and their exchanges; stresses that the development and management of the indices, as well as their use by market participants, should be cost-efficient in order to minimise the burden on market participants and maximise positive second-round effects, such as increased stock listings and new financial products;

Added56. Highlights the importance of improved access to up-to-date pricing and product information for retail investors, and to opportunities for bespoke offerings; calls for measures to make such information more easily accessible;

Added57. Recalls that pension systems and their financing models largely depend on national specificities; stresses that pensions help protect pensioners, build capital markets and mobilise investment systems, and must prioritise stability, solidarity and the provision of adequate and predictable income in retirement; highlights that strong retail saver protection safeguards should be considered in the development of pillar 2 and pillar 3 pension products;

Added58. Believes that pension tracking systems can give European citizens a clearer overview of the pension entitlements that they can expect in retirement; urges the Commission to ensure that all Member States introduce simple and transparent pension tracking systems that are easily and freely accessible to citizens;

Added59. Points out that intermediaries such as pension funds and insurance undertakings play a key role in channelling private savings into productive investments; expects that the Commission will adopt an ambitious delegated act on long-term guarantees and long-term equities under Solvency II that fully reflects the agreement reached by the co-legislators on the Solvency II amending directive and takes into consideration the relevant recommendations of EIOPA;

Added60. Expects the Commission to develop solutions that allow companies, including growing start-ups, microenterprises and SMEs, to scale up and list within the EU; asks, therefore, that the future EU start-up and scale-up strategy include a chapter on finance, in particular on venture capital, outlining the right incentives for European start-ups and scale-ups not to relocate to countries outside the EU and aimed at creating an attractive and open investment environment that welcomes both EU and global investors wishing to invest in the Union; highlights the importance of attracting talent to the EU in order to ensure long-term economic growth, innovation and global competitiveness; highlights the need to deepen the integration of EU primary markets by advancing regulatory convergence and facilitating cross-border listings; recognises that SME growth markets are a vital entry point into capital markets for SMEs and should be made more accessible through streamlined requirements;

Added61. Calls for targeted support at EU level to ensure that research results reach the market more effectively, especially in Member States with weaker innovation ecosystems; underlines the importance of connecting research institutions with start-ups and industry;

Added62. Supports investor exits from private companies by promoting mechanisms such as multilateral intermittent trading of privately held shares, thereby improving liquidity and transparency, and enabling early-stage investors to realise returns; considers that such mechanisms should be designed specifically to facilitate cross-border trading across EU Member States while preserving shareholder rights, especially for minority shareholders;

Added63. Calls on the Commission to prioritise an ambitious savings and investments union agenda that incentivises private investment, sustains financial stability and consumer protection, favours access to venture capital and equity investment to enable SMEs to benefit from greater market integration, ensures access to markets for retail investors, boosts financial literacy, and reduces over-reliance on and complements bank lending, while also providing incentives for sustainable activities;

Added64. Believes that increasing financial awareness and trust is essential to create a successful CMU and mobilise private investments; notes with concern that financial literacy remains low across the Union, with only 18 % of EU citizens demonstrating a high level of financial literacy; underlines that knowledge levels vary significantly across Members States and demographic groups; calls for a clearer focus on financial literacy, since there is a need to improve EU citizens’ level of understanding of investment products;

Added65. Considers that increased financial education initiatives should be fostered within the EU to increase citizens’ understanding of the benefits of capital market participation and help individual investors make well-informed investment decisions; welcomes the Commission’s proposal for a new strategy and calls for it to be sufficiently ambitious to significantly improve education levels across Europe, ensuring lasting change; highlights the urgent need to adopt measures to promote more accessible and equitable financial education throughout the EU, respecting national competences; believes that the Commission and Member States should fund initiatives by consumer organisations, individual investor associations and shareholder organisations that promote understanding and foster retail participation in capital markets; urges the Commission to support the development of independent, user-friendly digital tools that could empower citizens to easily compare the various features and characteristics of investment products available on the market;

Added66. Emphasises that financial education initiatives cannot replace a strong investor protection framework; points out that financial literacy initiatives may be limited in their impact, given the inevitable behavioural limitations and cognitive biases affecting individual investors, and the speed of innovation and sheer complexity of financial markets; believes that initiatives at EU and Member State level to support the standardisation and simplicity of financial products could enhance EU citizens’ understanding of investment products and improve their comparability;

Added67. Calls on the Commission and the Member States to increase their focus on digitalisation in the financial services sector in order to take advantage of the new opportunities offered by AI, data sharing and new technology, and to remain competitive internationally;

Added68. Calls on the Commission to facilitate long-term equity investments by institutional investors, including banks, insurers, pension funds and investment funds;

Added69. Supports the establishment of a fully fledged European deposit insurance scheme; acknowledges that risk sharing and risk reduction are interlinked;

Added70. Notes that securitisation can contribute to financial integration by bridging bank lending and capital markets; considers that action aimed at revitalising securitisation should focus on streamlining the regulatory requirements for disclosure and on simple, transparent and standardised criteria; rejects any proposal that would use securitisation to weaken the EU macroprudential framework and weaken its financial stability;

AddedMaking the best use of public resources to close the productivity gap

Added71. Recalls the importance of fiscal buffers to support public investment; acknowledges, in particular, that under the fiscal rules framework the Member States should maintain, as a minimum, the level of nationally financed public investment for the duration of their national medium-term structural plans, relative to the medium-term level prior to the start of the plan;

Added72. Notes that the private sector is unlikely to be able to finance the lion’s share of the investment necessary to digitalise and decarbonise the economy without public sector support; believes that the urgency of measures on competitiveness, defence, energy and decarbonisation will require substantial mobilisation of private and public investments, including public-private partnerships where relevant;

Added73. Points out, however, that public debt levels across the EU are high and fiscal space is limited; stresses, therefore, that any public support measure aimed at mobilising private investments must be well targeted; points out that de-risking initiatives, e.g. via public guarantees, have proven successful in achieving that goal;

Added74. Stresses that the increased impact and frequency of natural disasters would entail massive costs for public finances; notes that these future costs are currently not taken into account in the debt sustainability analysis;

Added75. Expects the Commission and Member States to take ambitious and concrete steps to avoid a slump in public investment after 2026, when, with the prospect of a major trade war which might impact the allocation of investments, the Recovery and Resilience Facility (RRF) and the InvestEU Programme are also set to expire; takes note of the RRF’s fundamental flaws, such as not involving regional and local authorities from design to delivery through a place-based and multilevel governance approach; highlights the need to sustain public investments at both national and European level to leverage private investment and finance high-quality public services and infrastructures; believes that this framework, where appropriate, should be strengthened by EU-level investment instruments and tools designed to minimise the cost for EU taxpayers and maximise efficiency in the provision of European public goods, which could also represent a step towards a common safe asset; welcomes, therefore, the proposal on the Omnibus package for InvestEU, which will mobilise a significant amount of additional investment for the remainder of the multiannual financial framework;

Added76. Points out that there is a need for effective coordination of national fiscal policies in order to maintain sufficient levels of public investment for the EU;

Added77. Notes that, in order to comply with the EU fiscal framework, EU governments are expected to pursue a restrictive fiscal stance in 2025 which could be at odds with the EU’s investment needs; emphasises that as EU governments struggle with their respective fiscal burdens, EU-wide investment instruments are needed to close the investment gap;

Added78. Recalls that the NextGenerationEU recovery fund is the largest stimulus package ever funded by the EU to support economic recovery and the green and digital transitions; points out that central questions in relation to refinancing NextGenerationEU still remain unresolved; calls on the Council to adopt new own resources as a matter of urgency in order to enable sustainable repayment of NextGenerationEU borrowing; considers that all instruments and tools should be explored in order to provide the Union with the necessary resources;

Added79. Notes that issuing a common safe asset could set a benchmark that would facilitate the achievement of the CMU, improve the transmission of monetary policy across the euro, reinforce the international role of the euro and address some of the investment needs identified in the Draghi report; reiterates, in this respect, that joint borrowing through the issuance of EU bonds presents a viable option to ensure that the Union has sufficient resources to respond to acute Union-wide crises such as the ongoing crisis in the area of security and defence; calls on the Commission to advance the discussions on addressing the significant investment gap in the EU identified by the Draghi report, and to present concrete proposals for financing solutions;

Added80. Welcomes the Commission’s intention to enhance retail investor participation in European financial products in collaboration with the European Investment Bank (EIB) Group, the European Stability Mechanism and national promotional banks; recommends that safe assets issued at EU level be incorporated into savings products for workers;

Added81. Believes that heightened defence needs due to geopolitical tensions require immediate mobilisation of financial support, without prejudice to the specific character of the security and defence policy of certain Member States, especially those adhering to a neutrality status; welcomes the Commission’s upcoming proposal for a new SAFE financial instrument of up to EUR 150 billion to boost EU defence capabilities as part of the ReArm Europe plan; regrets, however, that the Commission has chosen to base its legislative proposal on Article 122 TFEU, which excludes consultation of Parliament; recalls that the effective development of defence capabilities relies on joint investment at EU level, which ensures interoperability and generates efficiency gains, rather than depending primarily on fragmented national spending through the coordinated activation of national escape clauses to enable defence-related investments;82. Welcomes the joint initiative of the Commission and the EIB Group to set up a fund of funds called the ‘Defence Equity Facility’, with a budget of EUR 175 million for the period 2024-2027, to support private investment in European SMEs developing innovative dual-use defence technologies;

Added83. Welcomes the EIB Group’s commitment, outlined in its 2024–2027 Strategic Roadmap, to helping advance the CMU by mobilising private capital for productive investments and supporting gains in key EU policy areas, innovation throughout companies’ life cycles, venture capital financing and higher-risk equity financing for start-ups and scale-ups; recalls the duty of the EU’s public bank to support long-term transition projects that have difficulty obtaining funding from the private sector;

Added84. Stresses the need to simplify, streamline, optimise and consolidate EIB processes and mandates to enhance synergies, effectiveness and efficiency, and to reduce the administrative burden, reporting costs and complexity for companies and projects, which may otherwise be discouraged from seeking financing on account of complex procedures, high compliance costs and regulatory uncertainty;

Added85. Supports the increased use of higher-risk instruments such as direct and indirect equity and quasi equity financing by the EIB, including through the European Investment Fund, to foster investment in companies and funds, notably via venture capital and venture debt, while underlining that higher-risk instruments must be used with clear risk frameworks and measurable performance indicators;

Added86. Believes that public support for investment extends beyond access to finance and should also encompass technical assistance, project management, capacity-building, research commercialisation, support for accessing private finance and fostering cooperation between universities and venture capital to drive innovation and competitiveness;

Added87. Calls on the Commission to propose a Competitiveness Coordination Tool that also supports the identification of European industrial needs, shortages and market opportunities, and to produce relevant recommendations; stresses that it should be linked with the forthcoming Competitiveness Fund to ensure effective solutions to industrial challenges across the Union;

Added88. Calls on the Commission to place greater emphasis on savings and investments union priorities in the European Semester, ensuring that structural reforms and measures to deepen and integrate EU capital markets are consistently encouraged, monitored and evaluated;

Added89. Requests that the Commission incorporate specific measures to promote venture capital in the future Competitiveness Fund, the TechEU Programme and any similar initiatives;

Added90. Recognises the role of competition policy and state aid in supporting the development of European industry; considers, however, that state aid can lead to further fragmentation of the single market;

Added91. Notes that the Commission will publish a mid-term review of the savings and investments union by Q2 2027;

Added92. Stresses that Parliament should be adequately involved in implementing the savings and investments union; calls on the Commission to engage in early discussions in the field of CMU and financial services prior to putting forward new proposals and making any adjustments to existing ones;

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93. Instructs its President to forward this resolution to the Council and the Commission.