The Association for Financial Markets in Europe (AFME) is setting out its initial reflections and recommendations for banking and capital markets policy ahead of the next EU legislative cycle.

As the 2019-2024 EU legislative cycle concludes, new and pressing challenges have emerged: strained public finances, demographic shifts and annual investment transition needs of EUR 700 billion.

This context underscores the importance of developing open, deep, and integrated capital markets to support EU corporates and citizens.

Benefits of Integrated Markets:

For corporates

◾ Allocation of capital to finance innovation & transformation

◾ Access to larger pools of capital & increased liquidity

◾ Cheaper financing as a result

◾ Greater visibility for smaller, high-growth firms

For investors

◾ Diversification through broader range of investment options

◾ Increased liquidity contributes to lower costs and higher returns