GHENT, Belgium - European Union member states that want to kickstart the Capital Markets Union (CMU) should push ahead themselves, France said on Friday, as divisions over how far-reaching the project should be threatened further delays after a decade of debate.

Speaking before a meeting of EU finance ministers in the Belgian city of Ghent, French Finance Minister Bruno Le Maire said the CMU was essential to mobilise private cash for the investment needed in artificial intelligence and the transition to a climate-neutral economy.

France and Germany estimate that the green and digital overhaul of the European economy requires some 500 billion euros ($541 billion) in additional private funding each year - money that can flow only if it becomes easier to raise cash than it is currently on highly fragmented European capital markets.

A sticking point is how far to devolve national supervision over the proposed single market for capital across the EU to the EU's securities watchdog ESMA to reduce barriers, with some member states opposed.

"I have been trying for more than six years to build a Capital Markets Union. My conclusion is that starting with the 27 member states is a non-starter," Le Maire told reporters.

"We want to launch today in Ghent a capital markets union on a voluntary basis. If we have at the beginning three-to-four countries joining that initiative ... it will be a good basis," he said.

EU finance ministers were expected to issue a statement on the need to accelerate work on the CMU, making it a priority for the next executive European Commission that will take office at the end of the year.

Ireland's Paschal Donohoe, who chaired the meeting of finance ministers, aims to agree on the statement next month, telling reporters that despite disagreements, he was confident of finding common ground.

"Bruno asked today for more ambition in relation to how we move forward, we had other ministers make the case for delivery of other priorities," Donohoe said, adding Le Maire had emphasised how supervision of markets could evolve in future under ESMA.

EMPTY STATEMENTS

The EU has repeatedly sought to relaunch the CMU and Le Maire said a statement would not be enough.

"And I am fed up with discussions. I am fed up with empty statements. Do you really think that China and the United States will be impressed by our statements? We need decisions," he said.

Launched in 2014, the CMU is intended to make it easier for companies to issue stocks and bonds by unifying national rules on bankruptcies, prospectuses, taxation of capital gains, listing requirements, or different tax treatment of debt and equity, amongst others, with some modest progress already made.

It has become pressing to accelerate the work as the EU financial markets face competition from post-Brexit London in addition to Wall Street.

European Central Bank President Christine Lagarde told reporters that urgent efforts were needed given that 250 billion euros, or 1.8% of GDP, in net financial outflows leave Europe, predominantly for U.S. capital markets.

Le Maire said the initiative he wanted to launch on Friday would entail voluntary submission to single EU supervision of banks, stock exchanges and asset management.

He also sought participation in setting up a European savings product, the details of which have yet to be decided, and voluntary participation in the same securitisation rules. Le Maire gave no other details.

German Finance minister Christian Lindner said he also hoped for faster progress but still wanted all 27 EU countries involved.

"Bilateral initiatives or in smaller circles are possible, it's not excluded, but the goal must be for all to go forward together," Lindner said on entering the talks. REUTERS