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Can the Capital Markets Union save Europe from
tively with their US ( and now Chinese ) counterparts . The Draghi report points out that only four of the world ’ s top 50 tech companies are European , while there isn ’ t a single EU company with a market capitalisation over ¤ 100 billion that has been established in the last 50 years . Consequentially and simultaneously , the landscape for investors in the region is equally tricky . A key problem , for organisations and investors alike , is the muddled patchwork of rules and regulations across the continent , forged independently over centuries , which they must manoeuvre through to operate effectively . So , the question now for the EU decision-makers is : how do you make the EU competitive again ? The current plan is the Capital Markets Union ( CMU ): a flagship initiative designed to boost investmediocrity ?
A disparate and fragmented European Union is thwarting the continent ’ s ability to compete effectively with the largest markets in the world . But a new political impetus has reinvigorated the consolidation agenda , with a view to challenging national frameworks and bringing growth back to the region . Chris Lemmon reports .
The EU has a problem . It ’ s falling behind . Growth has been largely stagnant across the continent for the last two decades , with a wide number of metrics pointing to an ever-increasing investment and growth gap with the US . The recently-published EU competitiveness report , penned by former prime minister of Italy Mario Draghi , is the latest in a long line of research projects that has shone a spotlight on the EU capital markets , reaching a similar conclusion to those gone before it : things need to change . If the EU wishes to be a competitive force on the global stage , there has to be a fundamental rethink of how the bloc operates . At the heart of the problem is the fact that the EU is not a favourable location for a company to scale and compete effec-
28 Global Custodian Fall 2024