Lagarde calls on the EU to unify the financial and capital markets on the continent

Lagarde calls on the EU to unify the financial and capital markets on the continent

The Head of the European Central Bank (ECB), Christine Lagarde, calls on the Member States of the European Union (EU) to make greater efforts to unify the financial and capital markets on the continent. Completing the capital union after the coronavirus pandemic is not an option but a necessity, Lagarde said at an online banking conference. She described the removal of bureaucratic obstacles between individual states as the essence of the capital union, which will open up new financing possibilities for companies. The proposal to create a capital markets union was presented in 2015 by Jean-Claude Juncker, former President of the European Commission (EC). Among other things, the Commission wants to simplify the rules for investment and the taxation of capital gains. Harmonization of bankruptcy law is also envisaged. However, the implementation of the idea is tied. So far, the last action plan for the unification of financial and capital markets was presented by the Commission in September.