On 11 September 2020, the European Parliament issued a press release stating that the Economic and Monetary Affairs Committee has adopted a report calling for the urgent completion of the Capital Markets Union (CMU).

In their report, MEPs call for the development of the CMU to be accelerated, arguing that this would be a viable way for fund deprived companies to tap into financial markets and reduce their reliance on bank lending.

MEPs have also proposed certain targeted amendments seeking to align and simplify existing provisions in areas such as capital requirements, reporting frameworks and listing requirements for SMEs regarding initial public offerings. MEPs are also calling for the acceleration of the development of EU venture capital and private equity markets to increase transparency and reduce fragmentation. MEPs are also suggesting that the Commission should come forward with several new legislative proposals, including a proposal on ‘European Secured Notes’, as a new dual-recourse funding instrument for banks.