October 2015

Decoding the Capital Markets Union

Measuring the potential for growth across Europe’s fragmented capital markets

Published by New Financial in 2015, this report measures the scale of capital markets across Europe and finds that encouraging the growth of capital markets in less-developed markets in Europe could unlock more than €200 billion a year in additional funding for companies, and more than €6 trillion in long-term capital for investment. 

Authors William Wright and Laurence Bax raise some important questions about the challenges in developing a coherent approach that works as well for countries with nascent capital markets - such as the more recent member states in the European Union - as it does for those countries with highly developed markets, such as the UK and the Netherlands. The report addresses the following questions:

  • What is the range in depth and development in capital markets in different countries across Europe?

  • How does that range vary across different areas of the capital markets and how can it best be measured? What are the main drivers of the differences in depth in capital markets?

  • How big is the potential opportunity from harmonising capital markets? What would this mean for the European economy and - more importantly - for member states with less-developed capital markets? 

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