A Capital Markets Union for a Divided Europe

The European Commission wishes to create fully integrated European capital markets. The Capital Markets Union (CMU) is intended to make it easier for lenders and borrowers to come into contact with one another within Europe, especially across borders. This is regardless of whether it is arranged through the intermediary of a bank, through the capital markets, or through alternative channels such as crowdfunding. In addition, more non-bank funding will help to lessen dependence on the traditional banking industry and enhance the ability to cope with economic shocks. But will the measures announced in the CMU Action Plan be sufficient to achieve an integrated European capital market? And is the CMU Action Plan still realistic if London, Europe’s financial heart, no longer participates? Moreover, what impact will the Trump administration and the victory of Emmanuel Macron have on the CMU project? This article takes a critical look at the main aspects of the CMU Action Plan.