The size of EU investment funds and capital markets lags well behind the US. Repeated calls for a better performing Capital Markets Union, to support investments in biotech, or the green transition, have so far not led to any change. Investment fund markets in Europe continue to grow in the number of funds, but not in size, while household savings are largely held as bank deposits. Unless we manage to address the supply side, capital markets in Europe will remain below par.
A grand plan is therefore needed to streamline Europe’s fund markets.
This brief was prepared for the Politico 2023 Finance Summit, Paris, 23 March.