The Capital Market Union can be an important project for improving private sector risk-sharing mechanisms in Europe. Concrete implications for national policies may differ, given the heterogeneity in adjustment that can be observed. Moreover, analyzing the interaction between the real and financial sector based on aggregate time trends is difficult.
However, on the basis of the international experience, a few general principles can be underlined: •  Economic reforms that reduce barriers to the efficient functioning of markets, fuel competition, stimulate innovation and the adoption of new technologies, and encourage the accumulation of human and physical capital, including infrastructure, are associated with higher productivity growth.