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Light and Shadows in Europe’s New Action Plan for Capital Markets Union
Report

Light and Shadows in Europe’s New Action Plan for Capital Markets Union

CEPS, 2015

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Editorial Rating

7

Qualities

  • Eye Opening
  • Overview

Recommendation

Reformers always struggle with the question of whether to aim high or low in their proposals for change. While aiming low is often a surer route to success, the European Union has had a tradition of aiming high and succeeding nonetheless. Yet the bloc is approaching a single capital market with too much caution, according to economist Diego Valiante. getAbstract recommends his erudite call for more boldness in capital reforms so that EU firms and professionals can compete in a uniform market for investments and capital.

Take-Aways

  • A single European capital market would help to instigate economic growth in the European Union.
  • The current proposed action plan for Capital Markets Union (CMU) consists of some laudable, but limited, individual projects.
  • Increasing funding sources for small and medium-sized enterprises (SMEs), adding to bank capacity, and facilitating cross-border investing are some of the plan’s objectives.

About the Author

Diego Valiante leads the financial markets and institutions research group at the Centre for European Policy Studies.