From a Capital Markets Union towards a robust Savings and Investments Union
Sustaining the current progress towards a Capital Markets Union (CMU) requires both strong political commitment and high prioritisation. While integration is often cited as a key objective, the more fundamental issue for EU capital markets is their limited depth rather than integration alone. Unlike more market-based financial systems, the EU’s financial system relies heavily on banks, where deposits are liquid and nominal in value. This creates a mismatch when it comes to financing long-term, illiquid investments typical of capital markets.
Karel Lannoo is General Manager of ECMI and CEO of CEPS. Jesper Berg is Former Director-General of the Danish Financial Supervisory Authority. Apostolos Thomadakis is Head of Research at ECMI and Research Fellow at CEPS.