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Von der Leyen: “we will push forward” the issue of capital market unification before summer

by AI | 11.May 2025 | Europe in brief AI

Capital Markets Union is a European initiative aimed at creating a single market for financial services in the EU, including stocks and bonds. Its goal is to facilitate access for European companies to new sources of financing gathered in other European countries.

Chairwoman of the European Commission, Ursula von der Leyen. Photo: Anna Ross/dpa

The EU wants to “push forward” the integration of capital markets of member states before the summer – said the head of the European Commission Ursula Von der Leyen. The unification of financial services markets is one of the priorities of the Polish presidency in the EU Council, which indicates that it could help free up funds for defense.

“We need a deep and liquid capital market for the entire European Union. (…) We agreed that the time has come to really push this issue forward and make progress. Therefore, we expect significant progress on this matter before the summer,” said the head of the European Commission during a joint press conference with the new Chancellor of Germany Friedrich Merz.

The Capital Markets Union is a European initiative aimed at creating a single market for financial services in the EU, including stocks and bonds. Its goal is to facilitate European companies’ access to new sources of financing gathered in other European countries. The need for the unification of capital markets was also pointed out by former European Central Bank President Mario Draghi in his report on the competitiveness of the EU.

Economists note that the topic is particularly important in the context of current geopolitical challenges and crises, as the unification of financial services markets could help free up private funds for defense and green transformation.

However, there has been no agreement on this issue for many years. Currently, capital markets are largely fragmented, which hinders the flow of investments between member states.

Countries with a more cautious approach to finance, especially those in Northern Europe, fear that the integration of capital markets would mean a shared risk with countries that have a more liberal fiscal policy. Some EU states are also concerned that the union infringes on their own sovereignty in terms of financial supervision. (09.05.2025)