Netherlands' Ministry of Finance sent the House of Representatives the cabinet’s proposed approach to strengthening the European capital markets union, aimed at improving cross-border capital flows and expanding companies’ access to non-bank financing. The package, presented by Minister of Finance Eelco Heinen on behalf of the cabinet and co-signed with the Minister of Economic Affairs, focuses on stronger European supervision, a larger and more diverse supply of capital, and more consistent rules across the European Union. The proposals include reinforcing direct European supervision of cross-border market activities to reduce supervisory divergences that the cabinet links to uncertainty, unnecessary compliance burdens and higher costs for the financial sector, businesses and consumers. To broaden financing options, the cabinet points to greater European Investment Bank support for venture capital for young tech firms and strengthening pan-European investment vehicles such as the European Tech Champions Initiative, to which the Netherlands contributes financially. It also backs development of an EU investment account that would allow member states to offer national tax incentives and make it easier for savers to invest across borders, including through investment funds and exchange traded funds, alongside efforts to remove unjustified regulatory barriers such as differences in insolvency and financial reporting rules.

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