ECB Says Capital Markets Union Should Tackle Tough Issues Early

If the European Union wants to create a true capital market for the 28-nation bloc, it should start early on difficult issues such as harmonizing insolvency law, the European Central Bank said.

“The effectiveness of the CMU project will depend on the level of ambition with which it is pursued,” the ECB said in a response to an EU discussion document published on its website on Thursday. The need for quick wins shouldn’t “preclude early action in areas which are key for the functioning of capital markets, such as addressing problems in national insolvency laws or harmonizing key elements of insolvency law, corporate law and taxation of financial products.”