At the same time, integrating capital markets across borders can help improve private risk sharing within Europe. The Bundesbank therefore believes that the European capital markets union is a goal worth pursuing. But how do we get there? The argument for a capital markets union is straightforward, while its implementation is much less so.
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.