Finally achieving the single capital market

Eurozone capital markets became fragmented in the wake of the 2010-2012 sovereign debt crisis. Has this fragmentation been reduced since then? The Capital Markets Union reform was intended to remedy this. What is the state of play? Would stronger integration make the euro a major international reserve currency, which it still is not? Is a single capital market possible in the absence of a fiscal union, without common debt to ward off sovereign debt crises, without a single European risk-free asset? The pooled funding of the EU Next generation recovery plan, Europe’s response to the health crisis, may be a game changer: does it put us on the road to fiscal union? Does unifying European capital markets matter at a time when central banks have turned into true market makers: capital markets in Europe, as elsewhere, are on a drip feed of central liquidity. For how long? Will the markets manage to return to normal functioning? And finally, will they really “green”: can we count on the markets to achieve the ecological transition? These are the many questions that this session will address.