National reforms are crucial to strengthening capital markets in the EU
There is a strong political ambition to develop the EU’s capital markets. The drivers are well known: Europe needs to mobilise more private capital for investments that strengthen competitiveness and enable the twin transitions.
At the same time, the starting point is that the EU in practice consists of 27 capital market ecosystems with different cultures, institutions, and regulatory frameworks. Several of the most important reform areas for developing markets and putting more capital to work, such as taxation and pension systems, also lie at the national level. This means that harmonisation and centralisation at EU level have clear limitations, and that progress largely depends on national reforms and learning from countries with well-functioning capital markets. The EU can and should play an important role in facilitating such an exchange.
Against this background, the Confederation of Swedish Enterprise has commissioned the European Centre for International Political Economy (ECIPE) to analyse differences between Member States and identify reforms that can improve the functioning of capital markets. The report Boosting Competitiveness: 10 Actions for Deeper and Better Capital Markets in EU Member States presents ten actions for deeper and better capital markets, with a particular focus on what can be done nationally and how the EU can support the reform process.
