Too little progress has been made on developing Europe’s equity markets as a sustained source of funding for companies, according to a report from a City lobby group that comes as EU policymakers debate plans for a Capital Markets Union.

The UK government-commissioned report comes in response to the European Commission's plans for a Capital Markets Union across the 28 member states, and proposals for a Prospectus Directive to make it easier for companies to raise capital via an initial public offering or share offering.