What changed

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

P10_TA(2025)0185

on facilitating the financing of investmentsInvestments and reforms to boostfor European competitiveness and creatingthe creation of a Capital Markets Union (Draghi Report)

(2024/2116(INI))

Committee on Economic and Monetary Affairs

PE770.112

European Parliament resolution of 10 September 2025 on facilitating the financing of investments and reforms to boost European competitiveness and creating a Capital Markets Union (Draghi Report) (2024/2116(INI))

The European Parliament,

– having regard to the report of the Committee on Economic and Monetary Affairs (A10-0124/2025),

A. whereas the Draghi report pointed out severe shortcomings with regard to the general competitiveness of the European economy and a lack of productivity growth, and suggested that the solution lies in attracting investment, including through unlocking private capital, with the creation of the savings and investments union; whereas the Draghi report estimated that a minimum of EUR 750 to 800 billion in additional annual investment is required to reignite sustainable growth, restore EU productivity, support competitiveness, foster innovation, support the EU’s energy transition, enhance its leadership in digital technology, deliver on the EU’s environmental and social objectives and increase defence and security, and reduce dependencies; whereas such an amount corresponded to 4.4-4.74,4-4,7 % of EU GDP in 2023;

B. whereas the report notes that no company in the Union with a market capitalisation above EUR 100 billion has been created as a new entity in the last 50 years, while in the same period, six companies valued at over one trillion dollars were created in the United States;

J. whereas financial securities (listed shares, bonds, mutual funds and derivatives) directly held by households currently account for 43 % of US household wealth, but only 17 % of EU household wealth;

K. whereas EU households saved 14.7914,79 % of their disposable income (more than three times the US level of 4.74,7 %) and EU citizens held 31.0131,01 % of their savings (EUR 11.6311,63 trillion) in currency and deposits (compared with 12.112,1 % in the United States), which offer only limited returns; whereas they held 36 % (EUR 13.4213,42 trillion) in equity and investment fund shares (49.1%(49,1 % in the United States) and 27 % (EUR 10.0610,06 trillion) in insurance, pensions and standardised guarantees (27.5(27,5 % in the United States);

L. whereas as much as EUR 8 trillion could be shifted towards market-based investment instruments – or a flow of around EUR 350 billion annually – if EU households adjust their allocation between deposits and financial assets to reflect the structure observed in US households;

N. whereas around 70 % of corporate financing in the EU is in the form of borrowing from banks, by contrast with the United States, where around 77 % of corporate funding is financed through capital markets;

O. whereas according to the Draghi report, between 2008 and 2021, 147 European ‘unicorns’ – start-ups that went on to be valued at or above USD 1 billion – were founded, of which 40 relocated their headquarters abroad, mainly to the United States; whereas the administrative burden of the Union is estimated at around EUR 150 billion (1.3(1,3 % of annual GDP), internal barriers are, according to the International Monetary Fund (IMF), presented as a 100 % tariff in the internal market and only 4 of the world’s top 50 tech companies are European;

P. whereas research and development spending accounted for 2.22,2 % of GDP in the EU in 2023, but for 3.43,4 % in the United States and 2.6 % in China, while the 2000 Lisbon strategy set a research and development spending objective of 3 %; whereas of all the research and development expenditure within the EU, the private sector accounted for a share of 66 %, compared with 78 % in the United States and 77.777,7 % in China;

Q. whereas according to the IMF, the remaining non-tariff barriers constraining intra-EU trade are estimated to be at a tariff level of around 45 % for the average manufacturing sector (three times the level estimated among US states) and at 110 % for the average services sector; whereas among reported barriers in the single market, small- and medium-sized enterprise (SMEs) highlighted VAT at 17%,17 %, market access at 12%,12 %, finance at 10%10 % and market requirements at 6%;6 %;

R. whereas the European capital markets are highly fragmented, with a significant number of trading venues operating across the continent and notably, as at March 2023, there were 295 trading venues, 14 Central Counterparties (CCPs) and 32 Central Securities Depository (CSDs) in the EU; whereas 56-68 % of on-venue trading in 2023 took place on the domestic exchange for the five major Western European equity indices (AEX 25, CAC 40, DAX 40, IBEX 35 and MIB 40);

69. Supports the establishment of a fully fledged European deposit insurance scheme; acknowledges that risk sharing and risk reduction are interlinked;

70. Notes thatthe review of the securitisation canframework presented by the Commission on 17 June 2025, which could contribute to financial integration by bridging bank lending and capital markets; considers that action aimed at revitalising securitisation should focus on streamlining the regulatory requirements for disclosure and on simple, transparent and standardised criteria; rejects any proposal that would use securitisation to weaken the EU macroprudential framework andcriteria weakenwithout itshindering financial stability;

Making the best use of public resources to close the productivity gap

80. Welcomes the Commission’s intention to enhance retail investor participation in European financial products in collaboration with the European Investment Bank (EIB) Group, the European Stability Mechanism and national promotional banks; recommends that safe assets issued at EU level be incorporated into savings products for workers;

81. Believes that heightened defence needs due to geopolitical tensions require immediate mobilisation of financial support, without prejudice to the specific character of the security and defence policy of certain Member States, especially those adhering to a neutrality status; welcomes the Commission’s upcoming proposal for a new SAFE financial instrument of up to EUR 150 billion to boost EU defence capabilities as part of the ReArm Europe plan; regrets, however, that the Commission has chosen to base its legislative proposal on Article 122 TFEU, which excludes consultation of Parliament; recalls that the effective development of defence capabilities relies on joint investment at EU level, which ensures interoperability and generates efficiency gains, rather than depending primarily on fragmented national spending through the coordinated activation of national escape clauses to enable defence-related investments;82. Welcomes the joint initiative of the Commission and the EIB Group to set up a fund of funds called the ‘Defence Equity Facility’, with a budget of EUR 175 million for the period 2024-2027, to support private investment in European SMEs developing innovative dual-use defence technologies;investments;

82. Welcomes the joint initiative of the Commission and the EIB Group to set up a fund of funds called the ‘Defence Equity Facility’, with a budget of EUR 175 million for the period 2024-2027, to support private investment in European SMEs developing innovative dual-use defence technologies;

83. Welcomes the EIB Group’s commitment, outlined in its 2024–2027 Strategic Roadmap, to helping advance the CMU by mobilising private capital for productive investments and supporting gains in key EU policy areas, innovation throughout companies’ life cycles, venture capital financing and higher-risk equity financing for start-ups and scale-ups; recalls the duty of the EU’s public bank to support long-term transition projects that have difficulty obtaining funding from the private sector;

93. Instructs its President to forward this resolution to the Council and the Commission.

EXPLANATORY STATEMENT

Europe is faced with two existential threats. The first, well-documented in several reports such as those by Enrico Letta and Mario Draghi, is the risk of economic and industrial decline, leading to a gradual disappearance of the European Union from the global economic and geopolitical stage. The second, brutally brought to light by the invasion of Ukraine by Russia, the return of war on the European continent and the strategic realignment of the United States, is the inability by the European Union to ensure its own strategic autonomy and defence, to protect itself from increasingly imminent threats on its territory. This dual crisis is nothing less than an unprecedented test of Member States’ ability to collectively invest in the EU future and its survival. This is why the European Union must now explore ways to regain budgetary room for manoeuvre and mobilise private capital to invest not only at national level but also, and perhaps most importantly, at the European level. The EU must find a way to finance its defence capacities, without compromising its ability to invest in the green and sustainable reindustrialisation, in clean techs and European digital firms and to prepare for the future by investing in education and research. The recent Draghi Report has identified a minimum annual additional investment requirement of EUR 750 to 800 billion to restore the EU’s productivity and meet its environmental and social goals. However, the current investment landscape in the EU is fragmented, with significant disparities in access to private finance, particularly for innovative and high-growth companies. One of the reasons for the European Union’s lag behind its Chinese and American competitors has been the difficulty for its businesses to secure financing, particularly for small and medium-sized enterprises that require scaling up to grow. Simply put, companies today complain about the lack of long-term demand and call for regulatory stability, speed and responsiveness from public authorities to protect them from unfair commercial competition, and, finally, long-term contracts, including through public procurement. Europe has many strengths. It remains one of the most attractive economic zones for investment, with innovative companies and a highly skilled workforce. However, one could argue that Europe is living below its means, as it has so far failed to equip itself with the necessary tools and mechanisms to grow in line with its ambitions. Addressing this dual crisis will therefore hinge on its ability to put these tools in place. In this regard, European savings represent considerable financial means that Europe must not—and cannot—overlook. It is all the more crucial given that European citizens’ savings often end up financing foreign, particularly American, funds, which then reinvest in Europe and acquire European companies. The mobilisation of European citizens’ savings is therefore a political, economic, and strategic sovereignty issue and will be crucial to bridge the industrial gap with other major economies. However, the sole mobilisation of private finance will be insufficient to address all of the challenges that the EU needs to overcome. It will also require a significant level of public investments, particularly in high-risk areas such as defence and decarbonisation. This draft report outlines a series of measures aimed at addressing these challenges, at creating a more integrated and efficient capital market in the EU and at identifying the role of public sector in leveraging investments.

Strengthening the Capital Markets Union (CMU): The greater mobilisation of private finance requires different steps. The report calls for the acceleration of the CMU agenda, with a focus on improving access to venture capital and equity financing, particularly for innovative companies. It also emphasises the need for greater harmonisation of regulatory frameworks across Member States to facilitate cross-border investment and reduce fragmentation. It insists on making progress towards greater harmonised supervision and direct supervisory powers to the European Securities and Markets Authority (ESMA) over pan-European market infrastructures. The report highlights the importance of creating economic opportunities for private investment by offering competitive returns. The report insists on channelling household savings into productive investments and explores the creation of an EU investment savings account or label for basic and simple investment products that are suitable for retail investors. This would help to channel household savings into productive investments, particularly in sustainable and innovative sectors.

A crucial role for public investments: The report recognises the need for substantial public sector support to mobilise private investment, particularly in high-risk areas such as defence and decarbonisation. It calls for the establishment of a dedicated instrument within the European Stability Mechanism (ESM) to address heightened defence needs and recommends that the European Investment Bank (EIB) adapt its lending policy to support higher-risk investments. It also highlights the importance of issuing a common safe asset at the EU level to facilitate the achievement of the CMU and address the investment needs identified in the Draghi Report. It calls on the Commission to assess the various features of safe assets and publish a report outlining their common characteristics. Finally, the report proposes to establish a European Economic Intelligence Unit that would help connect industrial need with financial tools. The rapporteur calls on all stakeholders and co-legislators to work together to implement these measures and ensure that the EU is well-positioned to meet the challenges of the 21st century.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that she received input from the following entities or persons in the preparation of the draft report:

The list above is drawn up under the exclusive responsibility of the rapporteur.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that she has submitted to the natural persons concerned the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

04.06.2025

OPINION OF THE COMMITTEE ON BUDGETS

for the Committee on Economic and Monetary Affairs

on facilitating the financing of investments and reforms to boost European competitiveness and creating a Capital Markets Union (Draghi Report)

(2024/2116(INI))

Rapporteur for opinion: Karlo Ressler

AMENDMENTS

The Committee on Budgets submits the following to the Committee on Economic and Monetary Affairs, as the committee responsible :

Amendment 1

Motion for a resolution

Citation 12 a (new)

Amendment 2

Motion for a resolution

Citation 12 b (new)

Amendment 3

Motion for a resolution

Citation 12 c (new)

Amendment 4

Motion for a resolution

Recital A

Amendment 5

Motion for a resolution

Recital A a (new)

Amendment 6

Motion for a resolution

Recital A b (new)

Amendment 7

Motion for a resolution

Recital A c (new)

Amendment 8

Motion for a resolution

Recital A d (new)

Amendment 9

Motion for a resolution

Recital A e (new)

Amendment 10

Motion for a resolution

Recital F

Amendment 11

Motion for a resolution

Recital G

Amendment 12

Motion for a resolution

Paragraph 1

Amendment 13

Motion for a resolution

Paragraph 2

Amendment 14

Motion for a resolution

Paragraph 3

Amendment 15

Motion for a resolution

Paragraph 4

Amendment 16

Motion for a resolution

Paragraph 5

Amendment 17

Motion for a resolution

Paragraph 9

Amendment 18

Motion for a resolution

Paragraph 14 a (new)

Amendment 19

Motion for a resolution

Paragraph 15

Amendment 20

Motion for a resolution

Paragraph 15 a (new)

Amendment 21

Motion for a resolution

Paragraph 16

Amendment 22

Motion for a resolution

Paragraph 17

Amendment 23

Motion for a resolution

Paragraph 18

Amendment 24

Motion for a resolution

Paragraph 19

Amendment 25

Motion for a resolution

Paragraph 20

Amendment 26

Motion for a resolution

Paragraph 20 a (new)

Amendment 27

Motion for a resolution

Paragraph 20 b (new)

Amendment 28

Motion for a resolution

Paragraph 20 c (new)

Amendment 29

Motion for a resolution

Paragraph 20 d (new)

Amendment 30

Motion for a resolution

Paragraph 21

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR FOR OPINION HAS RECEIVED INPUT

ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION

FINAL VOTE BY ROLL CALL BY THE COMMITTEE ASKED FOR OPINION

Key:

+ : in favour

- : against

0 : abstentions

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE