Creating a single market for capital across all 28 EU member states by removing barriers to cross-border investment will make a key contribution to improving the absorption of macroeconomic shocks and lessening the impact of heterogeneous economic developments. The creation of a capital markets union could stimulate growth in the European Union substantially.
Not just that: it could also boost the stability of European monetary union. Integrated capital markets foster private risk sharing, which is a far more important shock absorber than public risk sharing. Since equity has a much greater capacity to absorb shocks than debt, fostering equity markets should be the particular aim of the capital markets union. 5. Conclusion  Let me conclude.