Matthew Fell, CBI Director for Competitive Markets, said:

“The EU Capital Markets Union can play an important role in connecting growing businesses with the finance they need to invest, scale-up and export.

“Promoting lending to small and medium-sized firms, particularly equity financing, will provide a shot in the arm to growth and jobs across Europe.

“The Commission has rightly recognised that to make Europe more competitive, it should support market-driven solutions. Regulation should be used only where it will really make a difference.

“Reforms of existing legislation, such as Solvency II, will help to stimulate long-term investment and embed the Commission’s growth agenda. At the same time, it’s important that the Action Plan does not get side-tracked by longer-term debates, in areas such as insolvency law.”