The European Union’s six largest economies have joined forces to push for faster progress on the bloc’s long-delayed Capital Markets Union (CMU), urging policymakers to accelerate reforms aimed at creating a more integrated financial market across Europe.
In a joint letter sent to the European Commission on Friday, Germany, France, Italy, Spain, Poland and the Netherlands called for renewed momentum behind the initiative, arguing that deeper capital market integration is essential to boost economic growth, improve competitiveness and strengthen Europe’s position in an increasingly challenging global landscape.
The six countries, collectively known as the E6, said Europe must move more quickly to remove barriers that continue to fragment financial markets across the bloc.
“Deeper and more integrated capital markets are key to unlocking Europe’s growth potential and ensuring its ability to act in an increasingly challenging global environment,” the letter stated.
The appeal comes as the European Union intensifies efforts to enhance its economic competitiveness and reduce dependence on external powers such as the United States and China. Policymakers increasingly view financial market integration as a crucial component of that strategy.
The Capital Markets Union aims to create a single market for capital throughout the EU, allowing investments, savings and financing to move more freely across member states. Supporters argue that such a system would make it easier for businesses to access funding, attract investment and expand across borders.
Despite broad political support for the concept, progress has been slow. Capital markets remain largely governed by national regulations, creating a fragmented system that many business leaders and investors consider inefficient and costly.
The E6 warned that the current framework limits Europe's ability to mobilize private capital and finance strategic investments needed to support long-term growth.
As part of their proposal, the six countries advocated granting additional powers to the European Securities and Markets Authority (ESMA), a move intended to strengthen regulatory consistency and improve supervision across the bloc’s financial markets.
However, the proposal is expected to face resistance from some member states that are reluctant to transfer authority over financial regulation to EU institutions. Concerns about national sovereignty have repeatedly complicated efforts to advance the Capital Markets Union since it was first proposed more than a decade ago.
The renewed push reflects growing frustration among Europe's largest economies, which argue that political delays have prevented the bloc from fully benefiting from financial market reforms.
While the E6 represent a significant share of the EU economy, additional support will be needed before legislation can move forward. Under EU voting rules, any proposal would require backing from at least 15 member states representing 65% of the bloc’s population.
That means the six countries must secure support from at least nine additional governments to build the necessary majority.
The debate over capital market integration is expected to remain a key issue in Brussels as the EU seeks new ways to stimulate investment, improve productivity and strengthen its competitiveness in a rapidly changing global economy.
