European Authorities: Urgent Completion of Capital Markets Union, a Necessity

Italian Prime Minister Giorgia Meloni recently called for the completion of the Capital Markets Union (CMU) in the European Union, to prevent capital flight from the community bloc, Reuters reports, according to Agerpres.

"We consider it necessary to quickly complete the Capital Markets Union," Meloni declared at the national assembly of the main employers' organization in Italy (Confindustria), held in Bologna.

European Central Bank President Christine Lagarde also recently assessed that Europe's continuing innovation difficulties and the gloomy political background make it imperative to unite its capital markets, and the region's inactivity in this area has cost valuable time.

"The urgency to integrate our capital markets has increased. This growing urgency is not matched by clear progress towards the objective," Lagarde warned, describing the problems Brussels is facing with the project, with "55 proposals from regulators and 50 non-legislative initiatives" tabled since 2015.

"Broadness is at the expense of depth and has allowed its capital markets union to be detached from national interests, which see some initiatives as a threat," Lagarde explained.

Also, according to Giorgia Meloni, high energy costs are the most pressing economic issue facing the authorities.

"The main problem we are facing is the cost of energy. The government is carrying out an assessment of the national energy market to determine whether high prices are also the result of speculation," the Italian prime minister said.

Confindustria has also called for billions of euros in state aid to help companies cope with rising energy costs and the prospect of US tariffs.

Confindustria president Emanuele Orsini said the European Union should allow member states to increase spending to boost investment without violating the bloc's fiscal rules. He added: "We need to act quickly to reduce energy costs, companies are facing an unsustainable situation."

Funds for the aid package could come from a review of Italy's post-pandemic recovery plan, along with EU regional development funds, Orsini said.

Last year, the average price of electricity in Italy reached 109 euros per megawatt-hour, almost double the level in France.

Meloni announced that Italy is discussing with the EC alternative ways to spend up to 15 billion euros of already allocated European funds to boost productivity, a chronic shortfall in the country.

The authorities in Rome have pledged to reduce the budget deficit below the EU ceiling of 3% of GDP in 2026, from 3.8% of GDP in 2024.