Great article. One dimension worth adding is the unintended consequence of recent anti-money laundering regulations. While introduced under the banner of financial integrity, AML rules have further strengthened banks' gatekeeping role, especially in retail and cross-border finance. This has made it harder for fintechs and other non-bank actors to compete, deepening the very dependence on banks that the Capital Markets Union aims to reduce. Might be an interesting next topic.
Thank you for this clear article. It seems like similar to the Single Market (as in your post last week), Member States themselves erect most of the barriers. While at the same time quite hypocritically calling on the EU to remove barriers and 'deepen' the Single Market/Capital Market. Also came across this article just before on this https://www.politico.eu/article/brussels-belgium-europe-single-market-china-european-union-regulations/
Great points. We should all think more about the consequences of our lack of both early- and late-stage funding opportunities for growth-oriented startups. There is a lack of venture capital, but we also have few mega-corps providing seed funding and buyout opportunities, which further limits dynamism. An exception is Denmark, where Novo Nordisk and the Novo Nordisk Foundation funds a quite well-functioning biotechnology cluster. No wonder they have one of the highest growth rates in the EU, exclusively driven by growth in pharmaceuticals and biotech.
That being said, we should also consider the advantages of bank finance, especially for mid-sized capital-intensive businesses such as manufacturing companies. The excessive financialization in the US also has its downsides.
Great article. One dimension worth adding is the unintended consequence of recent anti-money laundering regulations. While introduced under the banner of financial integrity, AML rules have further strengthened banks' gatekeeping role, especially in retail and cross-border finance. This has made it harder for fintechs and other non-bank actors to compete, deepening the very dependence on banks that the Capital Markets Union aims to reduce. Might be an interesting next topic.
Thank you for this clear article. It seems like similar to the Single Market (as in your post last week), Member States themselves erect most of the barriers. While at the same time quite hypocritically calling on the EU to remove barriers and 'deepen' the Single Market/Capital Market. Also came across this article just before on this https://www.politico.eu/article/brussels-belgium-europe-single-market-china-european-union-regulations/
Great points. We should all think more about the consequences of our lack of both early- and late-stage funding opportunities for growth-oriented startups. There is a lack of venture capital, but we also have few mega-corps providing seed funding and buyout opportunities, which further limits dynamism. An exception is Denmark, where Novo Nordisk and the Novo Nordisk Foundation funds a quite well-functioning biotechnology cluster. No wonder they have one of the highest growth rates in the EU, exclusively driven by growth in pharmaceuticals and biotech.
That being said, we should also consider the advantages of bank finance, especially for mid-sized capital-intensive businesses such as manufacturing companies. The excessive financialization in the US also has its downsides.