REBRANDING THE CAPITAL MARKETS UNION – TOWARDS AN INTEGRATED FINANCIAL ECOSYSTEM

Ivana Bajakić

doi:10.56461/SPZ_25404KJ

Authors

Ivana Bajakić Faculty of Law, University of Zagreb https://orcid.org/0000-0002-4109-0597

DOI:

https://doi.org/10.56461/SPZ_25404KJ

Keywords:

Capital Markets Union, Financial Integration, Competitiveness Compass, Regulatory Framework, European Economic Policy.

Abstract

This paper examines the current state and future prospects of the EU’s Capital Markets Union within the context of ongoing economic challenges, including climate change, technological transformation, and geopolitical shifts. Despite significant regulatory reforms aimed at enhancing financial stability and promoting innovation, EU capital markets remain fragmented and comparatively underdeveloped relative to its global peers, particularly the United States. The paper highlights the necessity of mobilising approximately €10 trillion in retail savings currently held in low-yield bank deposits to foster economic growth, especially for SMEs and innovative start-ups. It emphasises the importance of establishing a Savings and Investments Union, promoting cross-border investment, and improving financial literacy among EU citizens. The Competitiveness Compass initiative has been introduced as a strategic framework to integrate capital markets, reduce reliance on bank financing, and facilitate private investment in strategic sectors. Ultimately, the success of these ambitious initiatives depends on the political will of Member States and the harmonisation of regulatory frameworks to foster a more risk-tolerant investment culture.

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Author Biography

Ivana Bajakić, Faculty of Law, University of Zagreb

PhD, Jean Monnet Professor of EU Financial Markets and Regulation,

References

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