At the local level, decisive action is needed to develop the scale and depth of capital markets in countries with large catching-up potential, such as Latvia.4 At the EU level, measures need to be prioritised in areas which will make a real difference to the development of capital markets, notably measures to address barriers in national insolvency frameworks and in taxation.
We also need to be ambitious in our endeavours to complete the banking union. The statement of the Euro Summit adopted in December paves the way for operationalising the backstop to the Single Resolution Fund, which will create market confidence that bank resolutions will take place in an orderly fashion.