The European Union has stepped up efforts to create a more unified and cheaper capital market by next year when it loses the United Kingdom, the bloc's biggest financial centre.

The European Commission set out its latest plans for a "capital markets union". These include common rules for the covered bond market, a 2 point 6 trillion US dollar sector which the EU wants to be applied more broadly, using Germany and Denmark as a model. Next week, EU leaders will gather to decide on transition agreements for Britain's departure. British Prime Minister Theresa May believes she can strike a deal at the summit.