Christine Lagarde, Number one in ECB, moves forward Capital Markets Association. “At a stage where the European Union finds itself facing a challenge series of challenges Which will require a generational effort to finance, the Capital Markets Union is an indispensable project”, said the ECB President at the European Banking Congress, underlining that, so far, it has been possible to realize this project for two reasons. Has not happened: firstly, the conditions for the development of capital markets in Europe have not yet been met; secondly, there has been too much reliance on the “D” approach to integrationfrom bottom to top”.

Capital Markets Union, Lagarde stressed

Quoting Immanuel Kant, the President underlined that “we can reverse our Capital Markets Associationso that it can become a means important pTo finance ongoing changes”.

In particular, according to Lagarde, history teaches us that “the need for a single capital market emerges when there is a need to finance an economic transformation that exceeds the capabilities offered.” “Fraged Financial Systems” Here is the reference American Railroadwhich encouraged the integration of capital markets USA. “No railway These were considered so important for the future of the country – Lagarde explains – that capital markets were developed to include a wider pool of national and foreign investors” and this allowed investment in the railways to grow to around 90 million. Gave 1830 to about 5 billion in the early 1900s.

“US Model”

“Looked at from this perspective, it is clear why the Capital Markets Union has not yet succeeded in Europe”, says the President, reminding that the stabilization and sharing of markets in the EU has been prioritized. Risks in the private sector to make the monetary union more resilient. A need – remember – driven by the financial and credit crisis and which is Before the Capital Markets Consortium project.

“There must be a purpose wider community”, Lagarde says, recalling that, in the EU, governments and companies have effectively cut investment.

Route on Eurobond

But there is definitely an important way eurobond, “Some say that unless we start issuing European common bonds, which will eventually constitute safe European assets parallel to US Treasury bonds, this project will not succeed – Lagarde believes – but if Even if this were true, it should not stop us from working on it. Other elements are needed to make the Capital Markets Union a reality.” “Faced with such a huge financial challengeThe time to act is now.”

In her long speech Lagarde actually reminded that the EU is alive “An Important Moment”Grappling with a series of challenges, which can be summarized in the expression “Three D’s”: Deglobalization, demographic crisis and decarbonization. All of them three challenges It is destined to become increasingly important.

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