The EU is pushing for a real single market for capital and investment across the Union. Half a century after the Treaty of Rome, there is still no real free flow of capital in the EU. So said Commissioner for Financial Services, Jonathan Hill in Brussels this morning. This means European businesses are over-reliant on banks for funding, often failing to get the investment they need. Now the EU wants to build a real single market for capital from the ground up, removing the obstacles one by one. The goal is to make it as easy for an SME to raise funds as big business can, to make it cheaper to raise capital and to boost investment in infrastructure. To launch the process the Commission today opened a public consultation on key aspects (such as prospectus review and securitisation) deadline for contributions 13 May 2015, full details below. The Capital Markets Union aims to break down the barriers that are blocking cross-border investments in the EU and preventing businesses from getting access to finance. The current environment is tough for businesses that remain heavily reliant on banks and relatively less on capital markets. The opposite is true in other parts of the world. One example of the opportunities a fully functioning single market for capital could offer: if EU venture capital markets were as deep as the US, as much as 90 billion euro more in funds would have been available to companies between 2008 and 2013. With the CMU, the Commission also wants to clear obstacles that are preventing those who need financing from reaching investors and make the system for channelling those funds - the investment chain - as efficient as possible. The Commission launched a three-month consultation round, known as a Green Paper, the outcome of which will shape an Action Plan to help unlock non-bank funding so that start-ups can thrive and larger companies can expand further. The CMU is a long-term project that will require sustained effort over many years although early progress can also be made in some areas in the coming months. European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness said: "Capital Markets Union is the first structural initiative that the Commission puts forward under the investment plan. It will contribute to ensuring that the investment plan is more than a one-off push and has a durable positive impact on economic conditions in Europe." For more visit www.businessworld.ie