[ M A R K E T R E V I E W | C A P I T A L M A R K E T S U N I O N ] ment , enhance access to finance , enable cross-border investment , and reduce the fragmentation of Europe ’ s financial markets . Sounds great , right ? The problem though , is that the CMU has struggled to gain traction throughout the member states since its ideation in 2014 . The lumbering , 27-pronged consortium is burdened with a deep-rooted inertia as consensus on policy and legislation can often be so hard to come by . Combine this with a rising nationalistic sentiment sweeping through the region , driving a further wedge between the EU and its harmonisation goals , and it is becomes abundantly clear that change won ’ t be easy . But 10 years on , the political impetus surrounding the CMU seems to be reinvigorated . The string of damning reports appears to have awoken the beast , with government ministers and institutions across the continent coming forward with plans to kickstart Europe ’ s new age . “ The race is on and I want Europe to switch gear ,” said Ursula von der Leyen , upon successfully securing a second mandate as European Commission President in July .
Making a more hospitable environment To unlock those opportunities for growth and to boost investor power in the region ,
“ It is not that Europe does not have the cash and investment potential . It is about market attractiveness for local and international investors .”
SAM RILEY , CEO , CLEARSTREAM
there needs to be a simplification of the disparate systems that exist within the EU . “ If you have 25 to 30 smaller places that operate independent of one another – this can be in Europe or anywhere else – the liquidity and interoperability associated between jurisdictions becomes limited ,” explained Okan Pekin , head of securities services at Citi , at a recent AFME conference . “ As a result , even if the investors want to bring in hundreds of billions of dollars of capital , getting in and out will become problematic because of frictional costs . So , by virtue of your market structures , you are impeding investor attractiveness .” Take withholding tax , for example . Each country within the bloc has their own
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