ECMEG Report Launch Events: Brussels, London, Paris, Milan, Madrid
Afer the successful launch in Brussels (3 February) and London (21 April, in cooperation with Imperial College London), the final report of the European Capital Markets Expert Group (ECMEG), titled 'Europe's untapped capital market: rethinking integration after the great financial crisis' will now be presented in Paris, Milan and Madrid. Please follow the links below for more information and registration.
- 28 April - Paris, in cooperation with European Institute of Financial Regulation (EIFR)
- 9 May - Milan, in cooperation with Borsa Italiana
- 11 May - Madrid, in cooperation with Bolsas y Mercados Españole (BME) and Fundación de Estudios de Economía Aplicada (Fedea)
The report will also be officially presented at a closed-door meeting at the European Parliament on 27 April 2016. The event is hosted by Sirpa Pietikäinen (MEP) .
In the aftermath of the great financial crisis, financial market integration can help the functioning of Europe's financial system by facilitating the absorption of asymmetric shocks via private risk sharing. Ample evidence shows that the lack of cross-sectional risk diversification, i.e. limited cross-border banking and capital markets activities, is a significant contribution to the fast retrenchment of capital flows within national boundaries. Europe’s capital markets are poorly functioning and are underdeveloped. Governments' and financial institutions' bond issuance are an exception, but their activism is mostly a result of the financial difficulties of recent years. To fix this, an EU-wide action to promote competition among national capital markets could free up to €1.8 trillion in cash and deposits to invest in more profitable and riskier projects to create growth and jobs.
This report is the result of a yearlong discussion with a group of academics and industry experts to provide a long-term contribution to the capital markets union project. It identifies 36 cross-border barriers to capital markets integration and provides an organic plan to rethink EU financial integration with a set of 33 policy recommendations to improve the key components of a capital market transaction: price discovery, execution, and enforcement.
Suggested citation: Valiante, D. (2016), Europe's Untapped Capital Market: Rethinking integration after the great financial crisis, CEPS Paperback, London: Rowman & Littlefield International.