Leveraging Capital Markets Essential For Europe To Reach Its Full Potential

Nasdaq (Nasdaq: NDAQ) today published a white paper entitled “Capital Markets Union: The Road to Sustainable Growth in Europe.”  The white paper addresses the European Commission’s proposal and action plan for a Capital Markets Union, and highlights Nasdaq’s view on what needs to be done in order to create financial stability and get Europe back to sustainable growth.

“As a key stakeholder, Nasdaq welcomes the opportunity to provide input and be a part of the solution,” says Hans-Ole Jochumsen, President, Nasdaq. “Nasdaq fully supports the vision for a Capital Markets Union, but the focus has to shift if we want to create a stronger and more resilient financial system that will benefit Europe as a whole.”

In the report, Nasdaq argues that the concrete measures in the current action plan focus on making it easier for large institutions to invest more and extend their product and service offerings, rather than improving the capital markets themselves.

In Nasdaq’s view, the action plan should rather focus on increasing transparency, making the capital markets more accessible to smaller businesses, incentivizing long-term private investment in listed equities and encouraging the development and use of disruptive technology.

“Leveraging the capital markets is essential to allow Europe to reach its full potential,” Jochumsen continued. “Instead of being too dependent on bank financing, we should make it easier for companies to raise capital through the public equity markets. Incentivizing an equity-based culture and leveraging technology could have a significant impact on European productivity, innovation and job creation.”

The full report, “Capital Markets Union: The Road to Sustainable Growth in Europe,” can be accessed here.