Latviešu valodas versija nav pieejama
Rebecca Christie
- 11 March 2025
- OCCASIONAL PAPER SERIES - No. 369Last updated on 19 May 2025Details
- Abstract
- The European Union needs a single market for capital. Well-developed and integrated capital markets are necessary to support economic growth and resilience across the region, while offering benefits for businesses, households and financial stability. This paper examines the importance of the CMU for achieving five strategic objectives: supporting innovation and productivity, financing the twin transition, shoring up pension savings, strengthening alternatives to bank financing, and fostering convergence and inclusion. It highlights the progress made over the past decade, the challenges encountered and the renewed impetus behind the CMU initiative. The paper proposes concrete steps for moving forward, building on long-standing priorities supported by the ECB and the current policy debate on the CMU. First, it suggests facilitating access to capital markets by creating a new standard for a European savings and investment product. Second, it emphasises the importance of expanding capital markets across borders. This would be facilitated by making improvements towards achieving a more integrated supervisory ecosystem, establishing an integrated trading and post-trading landscape that leverages potential benefits of the digital transition, and a more active securitisation market that does not compromise on financial stability. Third, the paper highlights the need to channel capital towards innovative and competitive firms by increasing opportunities for equity and venture capital financing. These actions should be complemented by longer-term initiatives. They would include the ongoing commitment to address obstacles stemming from the lack of harmonisation of insolvency laws, corporate and taxation regimes, designing a safe asset for Europe, completing the banking union, and promoting financial literacy and inclusion.
- JEL Code
- E61 : Macroeconomics and Monetary Economics→Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook→Policy Objectives, Policy Designs and Consistency, Policy Coordination
F36 : International Economics→International Finance→Financial Aspects of Economic Integration
G18 : Financial Economics→General Financial Markets→Government Policy and Regulation
G24 : Financial Economics→Financial Institutions and Services→Investment Banking, Venture Capital, Brokerage, Ratings and Ratings Agencies
G51 : Financial Economics
O16 : Economic Development, Technological Change, and Growth→Economic Development→Financial Markets, Saving and Capital Investment, Corporate Finance and Governance