France’s Macron says Europe needs new push for capital markets union

PARIS (Reuters) – French President Emmanuel Macron said on Tuesday that Europe needed to take bold steps towards its long-stalled capital markets union project and that France would move ahead to make Paris a more attractive financial hub.

The French government is making a big push to revive EU plans to better integrate capital markets across borders to mobilise private cash for the investment needed in artificial intelligence and the transition to a climate-neutral economy.

In a video address for the 10th anniversary of the listing of the Euronext pan-European stock market operator, Macron said the capital markets union should be a priority for the next European Commission.

“This is a subject on which I want to make bold proposals with Germany in the coming weeks,” Macron said, calling for a more integrated financial market supervision and savings products that could be marketed across the bloc.

On the domestic front, introducing new legislation to make raising fresh equity capital easier would be a priority, Macron added.

A lawmaker in Macron’s party has prepared a bill to go to parliament next month that in particular makes multiple voting rights possible, which Macron said would make listing on the stock market easier.

While common in the United States, multiple voting allows founders of start-ups and other small firms to take their companies public without losing control of decision-making.

The bill would also give more flexibility to private equity firms, allowing them to invest in companies with a market capitalisation of up to 500 million euros ($542.15 million), up from a limit of 150 million euros currently.

“Since we’ve developed a rich startup ecosystem, they need an attractive environment to list in Europe if they choose to float on the stock market to grow,” Macron said.

He added that the French public financing body Caisse des Depots would funnel more cash to small and mid-sized firms by investing 500 million euros in funds specialised in such firms.

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