The Sound of Economics Capital markets union - why now?
Mar 27, 2024
Former President of the Eurogroup Working Group, Thomas Wieser, and financial expert Nicolas Véron discuss reviving the EU's Capital Markets Union. Topics include attracting private investment for green and digital transitions, unifying markets, promoting growth, and addressing market fragmentation to support Europe's financial architecture.
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Fragmented European Markets
- Europe has fragmented capital markets, with about 40 exchanges and related entities.
- This compares to roughly 10 in the US, hindering the scaling up of European companies.
The "27 Room House"
- Thomas Wieser compares European capital markets to a house with 27 rooms, some well-equipped, others not.
- He emphasizes the need for both bottom-up (national market strengthening) and top-down (EU-level) approaches.
EU Leverage in Financial Services
- EU influence is limited in areas like taxation, pensions, insolvency law, and housing finance.
- The EU has leverage in financial services policy, including regulation and investor protection.