capital market union

A European Capital Markets Union is good for everyoneWe support a common European single market

The liberal principles of the European Union have been securing our prosperity and our peace for many years. It is therefore in the interests of all people in Europe to safeguard and build on the many personal benefits the EU has to offer.

Thanks to the common Single Market...

  • 3.6 million new jobs have been created since 1990, of which around 936,000 in Germany.
  • every employee enjoys at least four weeks’ annual leave and a maximum working week of 48 hours.
  • every EU citizen can work where he or she wants since university degrees and apprenticeship diplomas are generally speaking mutually recognised.
  • roads are rehabilitated, fast internet access is provided and new daycare centres are built in all EU member states.
  • rigorous climate and environmental protection standards have been enshrined in all 28 member states.
  • there is greater equality of opportunity, e.g. thanks to the ERASMUS programme.
  • you can use one currency to pay in 19 EU member states.
  • holidays and the use of mobile phones within Europe are less expensive.
  • you can travel throughout Europe without having to show your passport.
  • real per capita GDP of the six founder countries of the single market, including the Federal Republic of Germany and the Netherlands, has more than trebled since 1957.

We want to safeguard and build on all these advantages. To achieve this – particularly in the light of Brexit – the European Union must remain strong and competitive in the future.

The European Commission is pushing for a Capital Markets Union

The Capital Markets Union is one of the most important initiatives put forward by the European Commission. Its main aim is to stimulate economic growth within the EU and to create jobs on the basis of stable and liquid capital markets. But there are also many other reasons in favour of such a union. It could prove a very effective solution for many of the challenges we are currently facing in Europe. Because of Brexit, there is now an even more urgent need to strengthen the capital markets within the EU-27 through attractive, stable and pan-European capital markets.

What benefits will a Capital Markets Union bring?

Capital markets are important for economic growth. Functioning capital markets contribute to financing the growth of start-ups. More intensive cross-border movements of capital would bring substantial benefits to the European economy. This is because capital would be more readily available across Europe: for example, to maintain and expand the infrastructure, to establish sustainable pension provision, for structural measures to reduce unemployment and to finance digitalisation. New investment opportunities could be tapped.

What will the Capital Markets Union bring for the financial market?

Above all, the Capital Markets Union will provide easier and more secure access to capital for growing businesses and the entire real economy in Europe. For example, it would ensure that savers have a greater choice of investment types and that businesses have better financing options.

And how does Deutsche Börse Group support

Europe and the Capital Markets Union?

Deutsche Börse Group is committed to an open, united, strong Europe as well as to political and economic integration to create a common market: we draw attention to these advantages, which have provided prosperity, peace and freedom in Europe for many decades – here are a few examples:

Platforms for European businesses and investors

European platforms for European businesses and investors wishing to invest beyond the local sphere would be of particular interest to young companies that require liquidity to expand their business.

Deutsche Börse Venture Network® is such a platform. Since 2015, it has been a forum for founders and investors; around US$ 1.85 billion have been activated by the businesses in the Network for innovative ideas to date.

Equity indices which invest in the European idea

For example, the EURO STOXX 50® tracks 50 major listed eurozone companies and is considered one of the leading stock market barometers in Europe. By contrast, the STOXX® Europe 50 index includes stocks of 50 European companies in 17 states.

Greater simplicity and attractiveness in foreign exchange trading

360T, a company of Deutsche Börse Group, allows you to trade 162 foreign exchange combinations in 24 currencies. 78 of these combinations include one or more currencies of an EU member state. Foreign exchange trading via 360T enables companies to collateralise goods and services purchased daily in many different currencies, independently of banks.

A central European platform for securities

TARGET2-Securities (T2S) is the European platform for the harmonised and central settlement of securities in central bank money – one of the biggest financial infrastructure projects in Europe. T2S stands not only for a fundamental restructuring of Europe’s capital markets, the platform also provides benefits and savings potential for all participants in securities trading. And the settlement of securities transactions in Europe is becoming faster and less expensive.

European business financing through bonds

At present, European businesses cover around 75 percent of their need for debt capital via loans and only around one-quarter via the capital market. The Capital Markets Union will allow businesses to finance themselves via the capital market much more easily and in different ways. For example, the issue of bonds would also offer new and broader investment forms to investors.

Brexit

In the light of Brexit, the EU-27 needs a competitive capital market more urgently than ever in order to tackle issues such as digitalisation and growth finance. We at Deutsche Börse help to strengthen Europe as a business location.

Ecosystem for growth

We have created an ecosystem for growth to enable, for example, companies that are not yet ready for the stock market to obtain funding.

 

Deutsche Börse Group has supported the aims of the Capital Markets Union right from the start. And we will stay on it – for the Europe we share.

Deutsche Börse Group – we make markets work

Headquartered in Frankfurt/Main, Deutsche Börse Group is one of the largest exchange organisations worldwide. It operates markets that provide integrity, transparency and security for investors wishing to invest capital and for issuers wishing to raise capital. On these markets, institutional traders buy and sell shares, derivatives and other financial instruments in accordance with clear rules and under strict supervision.

Deutsche Börse Group is now more than just a trading venue or exchange – it is a provider of financial market infrastructure. Its products and services span the entire finance value chain – its business areas range from pre-IPO services and the admission of securities, through trading, clearing, settlement and custody of securities and other financial instruments to collateral management. It also offers IT services, indices and market data worldwide.

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