On the 20th local time, the European Banking Conference was held in Frankfurt, Germany. In his opening speech, ECB President Lagarde called for paving the way for further financial integration and comprehensive capital market union. She pointed out that in the post-pandemic era, the conclusion of capital market alliances is not an option, but a necessity.
Lagarde said that after the COVID-19 Pandemic, if more new and innovative enterprises are to emerge, countries must clear the relevant obstacles. The purpose of the Capital Market Alliance is to remove bureaucratic barriers between EU member states so that enterprises have more financing channels and consumers have more cross-border investment options.
It is reported that the EU has been committed to building a capital market alliance since 2015, but progress has been slow. It was not until September this year that the European Commission issued a new action plan to promote the EU Capital Market Union that the process could continue to move forward.
The European Commission hopes to adopt a new action plan to reduce the cost of financing within the EU, simplify tax procedures, and harmonize policies, including the insolvency regime.
Lagarde said at the conference on the same day that the diversification of European financial markets is usually one of the important reasons why startups have difficulty in obtaining further financing. And once a large number of new projects emerge, even if many of them will eventually fail, the efficiency of high-tech venture capital will still be significantly improved.
