If a substantial current account adjustment is required, how might it take place, and what might be its effects? As to the first of these questions, three mechanisms might induce a narrowing of the current account deficit. First, a fall of U.S. prices below foreign prices could raise our competitiveness.
The capital markets union is a complex undertaking that touches upon many different areas. Consequently, the European Commission’s green paper on this subject 6 includes a wide variety of suggestions and steps to be taken. With regard to the objective of increasing the share of capital markets, we should focus on equity markets. Against this backdrop, let me emphasise the issue of taxes.