IDEAS home Printed from https://ideas.repec.org/p/bdi/opques/qef_957_25.html
   My bibliography  Save this paper

The economic impact of European capital market integration

Author

Listed:
  • Fabrizio Venditti

    (Bank of Italy)

  • Michele Caivano

    (Bank of Italy)

  • Pietro Cova

    (Bank of Italy)

  • Kevin Pallara

    (Bank of Italy)

  • Massimiliano Pisani

    (Bank of Italy)

Abstract

Enhancing innovation and productivity is a primary challenge for the European economy. To achieve this goal, it is essential to step up investment in innovative projects. Advancing the integration of capital markets, a key objective of the Savings and Investment Union, can be pivotal in this effort by reducing financing costs and strengthening the investment ecosystem. We argue that the integration of European capital markets – including the introduction of a common European safe asset – could raise investment levels by approximately 1 per cent of GDP. Over a ten-year horizon this would raise GDP by 1.5 per cent. If additional investment were focused on R&D spending, the impact would be three times as great.

Suggested Citation

  • Fabrizio Venditti & Michele Caivano & Pietro Cova & Kevin Pallara & Massimiliano Pisani, 2025. "The economic impact of European capital market integration," Questioni di Economia e Finanza (Occasional Papers) 957, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_957_25
    as

    Download full text from publisher

    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2025-0957/QEF_957_25.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • 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
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdi:opques:qef_957_25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bdigvit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.