CMU is a means of enhancing the integration of capital markets and making that integration more robust. Integrated capital markets can strengthen financial stability by increasing private risk sharing, thereby facilitating the absorption of shocks throughout the EU. At the same time, well-functioning capital markets facilitate the transmission of our monetary policy. Financial integration therefore features prominently in the Eurosystem’s mission statement.
CMU is also an agenda for an increase in the diversity and size of capital markets through the further development of certain market segments. Deeper and more diverse capital markets provide alternative sources of funding. For example, financing tools could be developed to better account for the specific needs of small and medium-sized enterprises, infrastructure projects or long-term financing.