Capital Markets Union in Europe: Why Other Unions Must Lead the Way
Summary 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...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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SpringerOpen
2016-01-01
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| Series: | Swiss Journal of Economics and Statistics |
| Subjects: | |
| Online Access: | http://link.springer.com/article/10.1007/BF03399431 |
| _version_ | 1819077897589096448 |
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| author | Viral V. Acharya Sascha Steffen |
| author_facet | Viral V. Acharya Sascha Steffen |
| author_sort | Viral V. Acharya |
| collection | DOAJ |
| description | Summary 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 an 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. |
| first_indexed | 2024-12-21T19:04:30Z |
| format | Article |
| id | doaj.art-1b095ee7463e40cca6a7d71fc183e8eb |
| institution | Directory Open Access Journal |
| issn | 2235-6282 |
| language | English |
| last_indexed | 2024-12-21T19:04:30Z |
| publishDate | 2016-01-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Swiss Journal of Economics and Statistics |
| spelling | doaj.art-1b095ee7463e40cca6a7d71fc183e8eb2022-12-21T18:53:23ZengSpringerOpenSwiss Journal of Economics and Statistics2235-62822016-01-01152431932910.1007/BF03399431Capital Markets Union in Europe: Why Other Unions Must Lead the WayViral V. Acharya0Sascha Steffen1Department of Finance, New York University, Stern School of BusinessArea of Banking, Finance and Insurance, and Centre for European Economic Research (ZEW), University of MannheimSummary 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 an 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.http://link.springer.com/article/10.1007/BF03399431Capital Markets Unionfinancial market integrationsovereign risk |
| spellingShingle | Viral V. Acharya Sascha Steffen Capital Markets Union in Europe: Why Other Unions Must Lead the Way Swiss Journal of Economics and Statistics Capital Markets Union financial market integration sovereign risk |
| title | Capital Markets Union in Europe: Why Other Unions Must Lead the Way |
| title_full | Capital Markets Union in Europe: Why Other Unions Must Lead the Way |
| title_fullStr | Capital Markets Union in Europe: Why Other Unions Must Lead the Way |
| title_full_unstemmed | Capital Markets Union in Europe: Why Other Unions Must Lead the Way |
| title_short | Capital Markets Union in Europe: Why Other Unions Must Lead the Way |
| title_sort | capital markets union in europe why other unions must lead the way |
| topic | Capital Markets Union financial market integration sovereign risk |
| url | http://link.springer.com/article/10.1007/BF03399431 |
| work_keys_str_mv | AT viralvacharya capitalmarketsunionineuropewhyotherunionsmustleadtheway AT saschasteffen capitalmarketsunionineuropewhyotherunionsmustleadtheway |