New Financial’s Head of Research takes part in panel discussion organised by the Oesterreichische Nationalbank

Maximilian Bierbaum, New Financial’s Head of Research recently took part in a panel discussion on a “New momentum for European capital markets? EU and UK perspectives” organised by Oesterreichische Nationalbank in cooperation with the Austrian Embassy London. The panel was hosted by Maria Silgoner with panellists including Sue Noffke, Jon Relleen, and Nick Collier.

Bigger and better capital markets in Europe are not the single answer to all of the problems Europe is facing, but they are more and more being seen as the vital tool and mechanism they are to strengthen and re-tool Europe in key areas such as innovation, energy, or defence. 

Max’s contribution focused on three key points in relation to achieving deeper and more liquid capital markets in Europe:

• While EU capital markets overall are heading in the right direction, their growth is being propped up by an outsize growth in just a few select sectors and member states. Capital markets in Europe need a political reset with a more focused plan at the EU level to re-engage EU institutions and coordinate member states to inject more urgency. There are a number of positive reforms at the EU level and good examples of well developed capital markets in a few member states to build on.

  
  

• Building bigger and better capital markets in Europe will require continued political commitment and concrete and tangible action at a time when the EU is facing many other challenges competing for political bandwidth. While we have heard many of the current soundbites before, things really are different this time. A number of geopolitical shocks and economic problems in Europe and worldwide have focused minds in Brussels and in the member states, and more developed capital markets will need to play an important role in reforming and reinvigorating the European economy.

  
  

• The debate on the EU’s strategic economy that started about a decade ago has become very real and relevant. The EU (and Europe more widely) needs all the help it can get to become more competitive again. This includes: simplifying and streamlining the EU’s regulatory framework; building bigger pools of long-term capital to close the EU’s investment gap; utilising the capital markets to help finance Europe’s journey towards more independence in all of the big areas such as defence, energy, tech, sustainability, and manufacturing; as well as having a more serious conversation about closer cooperation between the EU and the UK.

New Financial is publishing a new thought paper this week on the outlook for European capital markets policy and reform in 2025. If you’re interested to find out more about this research or New Financial's work on European capital markets, please get in touch via: info@newfinancial.org