FRANKFURT (dpa-AFX) - The Co-CEO of Deutsche Borse, Stephan Leithner, is calling for more efforts to bring the capital markets in Europe closer together. "Despite decades of efforts, our capital market is still underdeveloped in global comparison and its size does not correspond to the size of the EU economy and its international role," Leithner writes in a new paper by the Dax group on the further development of the Capital Markets Union.

An important phase is now imminent, writes Leithner with a view to the upcoming inauguration of the new EU Commission. The aim is to "transform the Capital Markets Union into a genuine savings and investment union", i.e. in particular to focus more on citizens and investors and to mobilize private capital - for example for retirement provision via pension funds.

In view of the weak economic growth, the EU must create "nothing less than a new vision for the Capital Markets Union", says Leithner. Only around ten percent of global borrower transactions take place in the EU. He also warned that there was a trend towards companies relocating to other regions.

In the paper, Deutsche Borse advocates, among other things, less fragmentation of stock markets in the EU, harmonized requirements for stock exchange listings, more uniform financial supervision and greater digitalization and use of data in the economy. Citizens should also invest more. Across the EU, more than 33 trillion euros in savings are held in cash or bank deposits - "an untapped resource". The EU should establish new savings and investment products, supported by tax incentives.

Brussels has been working for years on the Capital Markets Union, which aims to reduce bureaucratic hurdles between EU countries. The EU wants more small investors to invest in the local financial markets so that more capital is available for the green and digital transition. This should make it easier for companies to access capital. After years without much progress, the EU heads of state and government have recently spoken out in favor of driving the project forward.

Lagarde in favor of a European standard for savers

The Capital Markets Union is "the key to becoming more resilient in a fragmented global economy", the President of the European Central Bank, Christine Lagarde, recently said in Frankfurt. Europe must offer savers products that are accessible, transparent and affordable. "In my opinion, a 'European savings standard' - a standardized, EU-wide package of savings products - is the best way to achieve these goals," said Lagarde./als/ben/DP/zb