| Author (Person) | Acharya, Viral V., Steffen, Sascha |
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| Author (Corporate) | European Commission: DG Economic and Financial Affairs |
| Publisher | Publications Office of the European Union |
| Series Title | European Economy: Discussion Papers |
| Series Details | Number 062 |
| Publication Date | 20/07/2019 |
| ISSN | 2443-8022 |
| Content Type | Research Paper |
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Summary: This paper investigates the importance of a functioning banking union and fiscal union for implementing a capital markets union. Government bond markets in the Euro Area are highly fragmented causing further fragmentation in bond and equity markets. Capital Markets Union with fully integrated capital markets across member countries can only work when the status of member country sovereign bonds as risk-free assets is restored. Banking Union and fiscal union are both required for this outcome. However, the Banking Union remains an unfinished project without a European deposit insurance framework and there is little consensus at the moment for a fiscal union in the Euro Area. It appears thus that the fate of the Capital Markets Union solely rests with the European Central Bank in the near to medium term. |
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| Source Link |
Link to Main Source
https://ec.europa.eu/info/publications/economy-finance/importance-banking-union-and-fiscal-union-capital-markets-union_en
Alternative sources
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| Subject Categories | Economic and Financial Affairs |
| Subject Tags | Banking Union, Capital Markets Union [CMU] |
| Countries / Regions | Europe |
| International Organisations | European Central Bank (ECB) |
