What the EU will focus on to create Capital Markets Union

April 15 (Reuters) - EU leaders will give their political support on April 18 to creating a long-delayed European Capital Markets Union (CMU), which they hope will attract private capital and help fund the region transition to a "green" and digital economy.

Below are the issues that finances ministers for the 27-nation European Union said in March that the bloc and its institutions will focus on to set up a CMU by 2029:

THE COMMISSION WILL

* Assess what is holding back the development of the EU securitisation market, including the prudential treatment of securitisation for banks and insurance companies, and reporting and due diligence requirements.

* Assess how to improve supervision. The aim is to strengthen financial integration, ensure financial stability, simplify processes and reduce compliance costs.

* Propose ways of harmonising different national accounting rules so that corporate information can be compared more easily across borders.

* Further develop and improve the pan-European pension product (PEPP) to offer all citizens attractive pension options and make sure that pension savings are invested productively. THE COMMISSION AND SUPERVISORY AUTHORITIES WILL

* Assess how to cut the regulatory burden and transaction costs, in particular for smaller market participants. THE COMMISSION AND EU GOVERNMENTS WILL

* Make national corporate insolvency laws more similar, notably in the ranking of claims and insolvency triggers or the rules for financial collateral and settlement.

* Harmonise listing requirements across European stock exchanges to cut listing costs and make equity and bond financing more attractive, and examine how to improve access to market information.

* Develop simple and cost-effective cross-border investment and savings products for retail investors. EU GOVERNMENTS WILL

* Provide national tax incentives for companies to raise capital through shares rather than debt. The bias now, because of tax breaks, is towards raising funds via loans.

* Support investment in securities by adjusting the way personal income tax systems treat long-term retail investment products and capital gains and losses.

* Educate citizens about investment options available on capital markets as an alternative to bank deposits. THE FINANCE INDUSTRY WILL

* Offer easy-to-use and secure digital interfaces for all retail clients to access financial services across the EU. (Reporting by Jan Strupczewski; Editing by Alexander Smith)