CEPS: Keep capital markets union simple

15 July 2015

A first step in any new legislative plan should be to set a clear objective, based on a thorough analysis of the reasons for the persistent differences in markets and a prioritisation of initiatives aimed at reaching more integration.

A few additional initiatives will need to be taken before a European capital markets union is able to unleash its full potential. The main problem is fragmentation, arising from the deep differences existing from one country to another in the structure of markets, user preferences and the availability of wellorganised, long-term saving schemes. Several attempts have been made to address these barriers, but with limited or uneven success so far. 

The announcement of the creation of a capital markets union has led to a flurry of possible harmonisation proposals that could lead to new Action Plans to keep legislators busy for years to come. Yet, any new legislative plan should set a clear objective, based on a thorough analysis of the reasons for the persistent differences in markets and a prioritisation of initiatives aimed at reaching more integration. Amongst these, an initiative for an EU-wide, long-term savings product stands out. 

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