Deep and well-integrated cross-border funding would improve the private sector’s capacity to absorb local shocks, reducing the burden on fiscal policies. Here as well, renewed ambition is needed. Revamping the CMU agenda can play an important role in adapting the EU’s financial architecture in view of Brexit.
It can also enhance the EU’s attractiveness to international investors, and thus help to strengthen the international role of the euro. These reforms not only address the weaknesses of the institutional framework, they also ensure that the euro will be able to face tomorrow’s challenges.