Capital markets are essential to the European financial system, enabling the efficient allocation of capital and supporting long-term economic growth. They help companies raise finance to innovate and expand, offer investors tools to manage risk and diversify portfolios, and provide mechanisms for distributing and absorbing economic shocks through private risk-sharing across borders.
Integrated and well-functioning capital markets improve market liquidity, reduce the cost of capital, and facilitate more accessible and diverse investment opportunities. They also enhance Europe’s financial resilience, enabling businesses and economies to better adapt to changing conditions.