What changed between the draft committee report and the plenary report

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

6 unchanged paragraphs

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 publication of 18 July 2024 by Commission President Ursula von der Leyen entitled ‘Europe’s choice: political guidelines for the next European Commission 2024-2029’,

– having regard to the report of 9 September 2024 by Mario Draghi entitled ‘The future of European competitiveness’ (Draghi report),

– having regard to the report of 17 April 2024 by Enrico Letta entitled ‘Much more than a market’ (Letta report),

Changed:– having regard to the report of 25 April 2024 by Christian Noyer entitled ‘Developing European capital markets to finance the future’,future’ (Noyer report),

Added:– having regard to the Commission communications of 29 January 2025 entitled ‘A Competitiveness Compass for the EU’ (COM(2025)0030) and of 26 February 2025 entitled ‘The Clean Industrial Deal: A joint roadmap for competitiveness and decarbonisation’ (COM(2025)0085),

– having regard to the letter by President von der Leyen on defence to the European Council ahead of its meeting on 6 March 2025,

– having regard to the European Council conclusions of 6 March 2025 on European defence,

Added:– having regard to the Commission communication of 19 March 2025 entitled ‘Savings and Investments Union. A Strategy to Foster Citizens’ Wealth and Economic Competitiveness in the EU’ (COM(2025)0124),

– having regard to the statement of the Eurogroup in inclusive format on the future of Capital Markets Union (CMU) of 11 March 2024,

– having regard to the high-level roadmap of May 2024 for follow-up to the Eurogroup statement on the future of CMU in Eurogroup inclusive format,

– having regard to the European Council conclusions of 17 and 18 April 2024,

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Removed:– having regard to the position paper of the European Securities and Markets Authority (ESMA) of May 2024 entitled ‘Building more effective and attractive capital markets in the EU’,

Added:– having regard to the statement of the European Insurance and Occupational Pensions Authority (EIOPA) of 25 April 2024 entitled ‘How European insurers and pension funds can contribute to further strengthen the Capital Markets Union’, to its staff paper of 11 September 2024 entitled ‘A simple and long-term European savings product: the future Pan-European Pension Product’, to its costs and past performance report of 15 April 2025, and to its report of 7 November 2024 entitled ‘Prudential Treatment of Sustainability Risks’,

Added:– having regard to the position paper of the European Securities and Markets Authority (ESMA) of 22 May 2024 entitled ‘Building more effective and attractive capital markets in the EU’, to the ESMA market report of 18 December 2023 entitled ‘Costs and Performance of EU Retail Investment Products 2023’, and to the ESMA opinion of 24 July 2024 entitled ‘Sustainable investments: Facilitating the investor journey – A holistic vision for the long term’,

Added:– having regard to the ESMA report of 21 September 2023 entitled ‘The EU securitisation market – an overview’,

– having regard to the statement by the European Central Bank Governing Council of 7 March 2024 on advancing the Capital Markets Union,

Removed:– having regard to its resolution of 8 October 2020 on further development of the CMU: improving access to capital market finance, in particular by SMEs, and further enabling retail investor participation,

Added:– having regard to the Commission proposal of 12 February 2025 for a regulation of the European Parliament and of the Council amending Regulation (EU) No 909/2014 as regards a shorter settlement cycle in the Union (COM(2025)0038),

Added:– having regard to the European Tech Champions Initiative launched in February 2023,

Added:– having regard to the report of its Committee on Economic Affairs of 17 June 2025 on the financial activities of the European Investment Bank – annual report 2024,

Added:– having regard to its resolution of 8 October 2020 on further development of the Capital Markets Union (CMU): improving access to capital market finance, in particular by SMEs, and further enabling retail investor participation,

– having regard to its resolution of 9 July 2015 on Building a Capital Markets Union,

– having regard to Rule 55 of its Rules of Procedure,

– having regard to the opinion of the Committee on Budgets,

Changed:– having regard to the report of the Committee on Economic and Monetary Affairs (A10-0000/2025),(A10-0124/2025),

Change 1

Changed:A. whereas the Draghi report identifiedpointed 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 ofin additional annual investment is required to reignite sustainable growth, restore EU productivityproductivity, andsupport competitiveness, foster innovation, support the EU’s energy transition, enhance its leadership in digital technology, deliver on the EU’s environmental and social objectives;objectives and increase defence and security, and reduce dependencies; whereas such an amount corresponded to 4.4-4.7 % of EU GDP in 2023;

Change 2

Removed:B. whereas the ReArm Europe plan consists of five pillars aimed at financing Europe’s security and defence, covering both public investments and the savings and investment union;

Added: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;

Removed:C. whereas historically in Europe the private sector has contributed around four fifths of productive investment, with the public sector contributing the rest;

Added:C. whereas the ReArm Europe plan consists of five pillars aimed at financing Europe’s security and defence, covering both public investments and the savings and investments union;

Removed:D. whereas according to the Draghi report, EU household savings in 2022 were EUR 1 390 billion compared with EUR 840 billion in the US;

Added:D. whereas the ongoing trade wars and tariff disputes are causing significant uncertainty in global markets, negatively impacting growth, inflation and employment forecasts, particularly affecting cross-border investments and disrupting established supply chains; whereas the imposition of tariffs and trade barriers undermines the benefits of trade and competitive markets; whereas such geopolitical tensions create additional risks for investors, reducing confidence and hindering the flow of private capital across borders, which is crucial for funding innovation, start-ups and growth companies; whereas the instability caused by these trade conflicts risks slowing down the development of the CMU by discouraging investment in the European market, particularly in high-risk sectors that rely heavily on global trade networks;

Removed:E. whereas EU households saved 14.79 % of their disposable income and EU citizens held 31.01 % of their savings (EUR 11.63 trillion) in currency and deposits, which offer limited returns; whereas they held 36 % (EUR 13.42 trillion) in equity and investment fund shares and 27 % (EUR 10.06 trillion) in insurance, pensions and standardised guarantees;

Added:E. whereas the ongoing geopolitical uncertainties impact macroeconomic indicators, increase volatility on financial markets and weaken the US dollar; whereas this could reinforce the position of the euro as a more prominent global currency, bolstering Europe’s economic sovereignty and resilience;

Removed:F. whereas according to the Draghi report, between 2008 and 2021, close to 30 % of the ‘unicorns’ – start-ups that went on to be valued over USD 1 billion – relocated their headquarters abroad, mainly to the US;

Added:F. whereas historically in Europe the private sector has contributed around four fifths of productive investment, while the public sector has contributed the rest;

Removed:G. whereas research and development spending accounted for 2.1 % of GDP in the EU in 2021, but 3.5 % in the US and 2.4 % in China, while the 2000 Lisbon strategy set a research and development spending objective of 3 %;

Added:G. whereas the overall levels of productive investments in the EU have been significantly lower than in the United States over the past two decades;

Added:H. whereas only 18 % of European citizens possess a high level of financial literacy, as highlighted by the financial literacy monitor prepared by the Commission; whereas the majority, 64 %, have an average level of financial knowledge, and 18 % a low level of financial literacy, creating a significant gap in the financial capabilities of European citizens; whereas only four Member States have high levels of financial knowledge, namely the Netherlands, Denmark, Sweden and Slovenia; whereas increasing financial literacy could enable individuals to make informed decisions about savings, investments and retirement planning, thus improving their long-term financial well-being; whereas strengthening financial education across the EU is necessary to equip citizens with the skills needed to navigate increasingly complex financial markets and take full advantage of investment opportunities, which will contribute to the growth of the economy;

Added:I. whereas according to the Draghi report, EU household savings in 2022 were EUR 1 390 billion, compared with EUR 840 billion in the United States;

Added: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;

Added:K. whereas EU households saved 14.79 % of their disposable income (more than three times the US level of 4.7 %) and EU citizens held 31.01 % of their savings (EUR 11.63 trillion) in currency and deposits (compared with 12.1 % in the United States), which offer only limited returns; whereas they held 36 % (EUR 13.42 trillion) in equity and investment fund shares (49.1% in the United States) and 27 % (EUR 10.06 trillion) in insurance, pensions and standardised guarantees (27.5 % in the United States);

Added: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;

Added:M. whereas European households invest approximately EUR 300 billion annually outside the EU, primarily in the United States; whereas this amount is comparable to the additional capital that could be mobilised within the EU under more market-oriented conditions;

Added: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;

Added: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 % 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;

Added:P. whereas research and development spending accounted for 2.2 % of GDP in the EU in 2023, but for 3.4 % 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 77.7 % in China;

Added: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%, market access at 12%, finance at 10% and market requirements at 6%;

Added: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);

Added:S. whereas the integration of capital markets, while necessary, is not sufficient on its own to achieve the targeted increase in investment; whereas tax and insolvency regimes across Member States remain substantially unaligned;

Added:T. whereas according to the Letta report, tax fragmentation remains a major barrier for EU businesses and SMEs in particular, and a better alignment through a more coordinated EU tax framework is key to facilitating the free movement of workers, goods and services and in supporting growth and private investment;

Added:U. whereas the lack of exit opportunities for investors constitutes a key factor in the underdevelopment of venture and growth capital funds in the EU; whereas the EU relies excessively on bank financing;

Added:V. whereas the EU budget should have competitiveness as one of its central areas of focus, promote commonly agreed strategic priorities and fund European public goods, thereby contributing to higher productivity while ensuring economic, social and territorial cohesion; whereas stronger coordination between the EU and Member State budgets is necessary to avoid fragmentation in the single market and to boost the overall impact of public investments;

Added:W. whereas safe assets have been issued at EU level by European issuers such as the European Investment Bank, the European Financial Stability Facility, the European Stability Mechanism and, since 1976, the European Economic Community and then the EU itself;

Added:X. whereas equity financing has significant untapped potential in supporting the growth and innovation of EU companies;