Briefing | Oct. 8, 2015

Who will really benefit from Europe’s new financial policy initiative?

On 30th September 2015 the European Commission released an “action plan” to implement the Capital Market Union initiative, the last piece of the EU’s policy response jigsaw following the 2008 financial crisis. 

The Commission claims this initiative will serve growth and jobs, with a particular focus on small and medium size enterprises. But Global Witness and others believe it’s a false promise. In reality, the Commission’s proposal is designed to increase the global competitiveness of European investment banks and private equity funds by reducing regulatory controls, with major risks to the people and environment of Europe and beyond – including financing land grabbing and deforestation.

A joint statement by 27 organisations across Europe expresses our common areas of concern about the Capital Market Union.

Global Witness, Friends of the Earth Europe, Action Aid and SOMO also published an Op-Ed in Euractiv calling on Europe’s Parliamentarians and 28 Member States to re-shape the Capital Market Union into robust legislative proposals to halt financial instability and place a curb on investments which harm human rights and the environment.