EU’s capital markets union faces possible coalition

A group of European Union member states is prepared to advance the creation of a Capital Markets Union independently if a unanimous agreement cannot be reached, EU Commissioner for Economy Paolo Gentiloni announced on Monday, as reported by Reuters.

Speaking ahead of the eurozone finance ministers’ meeting in Brussels, Gentiloni highlighted the Eurogroup’s dedication to capital market progression, yet he acknowledged the significant political and practical challenges that lie ahead.

The push for a unified market comes as a response to the fragmented nature of current EU capital markets, which, unlike the more integrated US markets, are primarily confined within national borders. This fragmentation is despite the fact that Europeans typically save more than their American counterparts.

Last month’s summit saw all EU leaders backing the concept of a capital markets union; however, the consensus on the finer points remains elusive, with some nations showing reluctance to relinquish control over their domestic financial regulations.

The Commissioner’s remarks signal a possible shift in strategy, potentially leading to a multi-speed approach in the pursuit of deeper financial integration within the EU.