The emphasis on sustainable finance and, recently, on the pan-European personal pension product (PEPP), and possibly the development of occupational pensions or investment savings accounts, may be a way forward in order to boost the demand for the CMU. However, the cross-border portability of these instruments is key to their success.
Besides harmonisation towards best practices in securitisation, accounting, insolvency law, company law and property rights, we need to take steps that address the debt-equity bias, to improve financial literacy and revive the equity investment culture. We must take steps to enhance public sector risk-sharing in EMU by creating a centralised fiscal stabilisation tool.