This is not something that can be done in a day. Capital markets are complex and diverse. Exchanges, central counterparties, tax law, insolvency law – these and much more play a role. Creating a European capital market thus requires many different measures to be taken. And, more than anything, it requires time. Still, that is no reason not to do it.
Behind that are several factors, such as the continued trend of investors’ active risk-taking – the so-called “risk-on” trend, a moderate rise in U.S. long-term interest rates, and strong monetary easing by the Bank of Japan. Third, these two steps will encourage firms’ positive initiatives to make fixed  BIS central bankers’ speeches  1  investment and implement structural reform.