The development of financial markets has long been central to economic growth, innovation, and competitiveness. For decades, Europe has looked to the US as a benchmark for advancing its own financial infrastructure, especially in capital market development.
The Capital Markets Union (CMU) initiative, aimed at deepening and integrating EU capital markets, reflects this aspiration. While drawing inspiration from the US experience is understandable, Europe should not engage in a direct comparison or attempt to replicate the US model. The EU’s distinctive institutional, structural and cultural characteristics necessitate a tailored approach to capital market development.
Instead, the EU should focus on developing capital markets that reflect its own values, priorities, and diverse financial landscape. This would foster sustainable growth, innovation, and integration in a way that suits the European context. By setting its own path and building on its strengths, Europe can ensure a thriving financial ecosystem that meets the needs of its economy and citizens.
About the author:
Apostolos Thomadakis is Head of Research at the European Capital Markets Institute (ECMI), an independent research institute run by CEPS’ Financial Markets and Institutions Unit.