Not so long ago, Europeans were in principle obliged to manage and invest their money predominantly in their home country. Now, further to the liberalisation of capital movements and payments which has accompanied the consolidation of the Single Market, EU citizens can conduct most operations abroad, as diverse as opening bank accounts, buying shares in non-domestic companies, or purchasing real estate. However, the rules concerning some of these rights remain governed by national provisions which vary from one Member State to another.

Free movement of capital is an essential condition for the proper functioning of the Single Market. It enables a better allocation of resources within the EU, facilitates trade across borders, favours workers mobility, and makes it easier for businesses to raise the money they need to start and grow.

Free movement of capital is also an essential condition for the cross-border activities of financial services companies. Indeed, the effectiveness of EU initiatives in the financial services sector would be compromised if capital movements within the EU were subject to restrictions.

In 2005 the Commission completed the legislative phase of an action plan aimed at developing a true European-wide market in financial services and is now implementing a new strategy to deepen financial integration and deliver further benefits to industry and consumers alike. A more developed Single Market in financial services will provide consumers with a wider choice of financial products – such as loans, insurances, saving plans and pensions – which they will be able to buy from anywhere in Europe. It will also make it easier and cheaper for companies to borrow money, bringing down the cost of capital, goods and services for everybody.