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Developing the Capital Markets Union to mobilise savings and stimulate investment in Europe
[Développer l’Union des marchés de capitaux pour mobiliser l’épargne et stimuler l’investissement en Europe]

Author

Listed:
  • Gossé Jean-Baptiste
  • Hermet Émilie
  • Mourjane Anass
  • Dufouleur Mathilde

Abstract

The decline in investment in the European Union (EU) since the 2008 crisis can be partly explained by a sharp drop in business investment in South and Eastern Europe, which could be further exacerbated by the Covid-19 pandemic. According to recent survey data, in these countries, firms, and particularly the smallest firms, still struggle to obtain financing. In addition, over the past several years, the net equity financing available to firms in the euro area has been insufficient. These problems worsened during the health crisis, which led to the implementation of credit support measures. The Capital Markets Union (CMU) project aims to respond to these financing constraints by better mobilising European savings, which have increased since 2007, and by encouraging cross-border investments. Le recul de l’investissement en Union européenne (UE) depuis la crise de 2008 s’explique en partie par une baisse marquée de l’investissement des entreprises dans le sud et l’est de l’Europe, que la crise de la Covid-19 pourrait encore accentuer. D’après des données d’enquêtes récentes, les entreprises de ces pays, et en particulier les plus petites, rencontrent toujours des difficultés pour se financer. De plus, les entreprises de la zone euro manquent de financements nets en fonds propres depuis quelques années. Ces difficultés se sont accrues lors de la crise sanitaire, ce qui a conduit à la mise en place de mesures de soutien au crédit. En réponse à ces contraintes de financement, le projet d’Union des marchés de capitaux (UMC) vise à mieux mobiliser l’épargne européenne, en hausse depuis 2007, et à favoriser les investissements transfrontaliers.

Suggested Citation

  • Gossé Jean-Baptiste & Hermet Émilie & Mourjane Anass & Dufouleur Mathilde, 2020. "Developing the Capital Markets Union to mobilise savings and stimulate investment in Europe [Développer l’Union des marchés de capitaux pour mobiliser l’épargne et stimuler l’investissement en Euro," Bulletin de la Banque de France, Banque de France, issue 231.
    • Handle: RePEc:bfr:bullbf:2020:231:03
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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