Europe Needs Unified Institutions to Advance Stalled Capital Markets Union
-
CMU has failed to advance so far because Europe has lacked a unifying project to anchor it, unlike the railroad financing need that drove US capital market development.
-
CMU is now critically needed to help finance Europe's economic transformations relating to deglobalization, demographics, and decarbonization.
-
Fragmented national markets and regulatory frameworks have hindered CMU, so a top-down approach is needed rather than the previous bottom-up strategy.
-
Strong, unified institutions and regulations at the EU level are essential to overcome fragmentation, like a European SEC.
-
The private sector must also show determination, for example by consolidating market infrastructure, to help CMU succeed.