Capital Market Union – Perspectives on Changes in the Financial System Model in the European Union

Authors

  • Małgorzata Anna Janicka University of Lodz, Faculty of Economics and Sociology, Department of International Finance

DOI:

https://doi.org/10.18778/0208-6018.333.13

Keywords:

capital markets union, European financial market, European Union, euro area, crisis

Abstract

Currently the EU is working on the building of the so‑called Capital Markets Union. The undertaken restructuring of the financing model is designed to make a shift in the main channel through which enterprises raise investment funds, from loans to capital, and – as a result – contribute to more dynamic growth in the EU Member States. So far, the key problem with insufficient dynamics of Economic growth in the EU seems to stem not so much from the structure of investment financing but from mechanisms of the euro zone, which economically polarise its members. The European Union should, first and foremost, thoroughly analyse and reformulate the constituting principles of the euro zone, instead of making another attempt to deepen capital markets integration and changing the financing model dominant in the EU Member States. The objective of the paper is to analyse conditions and rationale of the shift in the role which the banking sector plays in transferring investment resources for the benefit of the European Union capital markets (intensification of disintermediation). Conclusions from the analysis were formulated based on qualitative studies and analyses of source materials prepared by the EU, as well as research and financial institutions (surveys, reports, recommendations), and on the basis of available data.

Downloads

Download data is not yet available.

References

Abiad A., Oomes N., Ueda K. (2004), The Quality Effect: Does Financial Liberalization Improve the Allocation of Capital?, “IMF Working Paper”, no. 112.
Google Scholar

Aguiar M., Amador M., Farhi E., Gopinath G. (2014), Coordination and Crisis in Monetary Unions, “NBER Working Paper”, no. 20277.
Google Scholar

Aizenman J. (2014), The Eurocrisis: Muddling Through, or On the Way to a More Perfect Euro Union?, “NBER Working Paper”, no. 20242.
Google Scholar

Arghyrou M.G., Tsoukalas J.D. (2010), The Greek Debt Crisis: Likely Causes, Mechanics and Outcomes, “Cardiff Economics Working Papers”, no. 3, Cardiff Business School.
Google Scholar

Baldwin R., Giavazzi F. (eds.) (2015), The Eurozone Crisis. A Consensus View of the Causes and a Few Possible Remedies, A VoxEU.org eBook, CEPR Press.
Google Scholar

Beetsma R., Giuliodori M. (2010), The Macroeconomic Costs and Benefits of the EMU and Other Monetary Unions: An Overview of Recent Research, “Journal of Economic Literature, American Economic Association”, vol. 48(3), pp. 603–641.
Google Scholar

Bilski J., Janicka M. (2014), Kryzys w strefie euro a nierównowaga zewnętrzna strefy, [in:] T. Gruszecki (ed.), Kryzys a dług publiczny w krajach rozwiniętych, KUL, Lublin.
Google Scholar

Bilski J., Janicka M. (2015), Kryzys strefy euro. Przypadek Grecji, “Studia Prawno‑Ekonomiczne”, vol. XCVII, Łódzkie Towarzystwo Naukowe, Łódź, pp. 199–215
Google Scholar

Bordo M.D., James H. (2013), The European Crisis in the Context of the History of Previous Financial Crises, “NBER Working Paper”, no. 19112.
Google Scholar

Bordo M.D., Markiewicz A., Jonung L. (2011), Fiscal Union for the Euro: Some Lessons from History, “NBER Working Paper”, no. 17380.
Google Scholar

Capital Markets Union: Integration of Capital Markets in the European Union (2015a), PwC, https://www.pwc.com/gx/en/banking‑capital‑markets/pdf/cmu‑report‑sept–2015.pdf. [accessed: 15.10.2016].
Google Scholar

Delors J. (1989), Report on economic and monetary union in the European Community, Committee for the Economic and Monetary Union.
Google Scholar

Ekonomiczne wyzwania integracji Polski ze strefą euro (2014), NBP, Warszawa.
Google Scholar

Euro Area Policies (2015), 2015 Article IV Consultation‑Press Release; Staff Report; and Statement by the Executive Director, IMF.
Google Scholar

European Commission (1990), One Market, One Money: An Evaluation of the Potential Benefits and Costs of Forming an Economic and Monetary Union, European Economy 44.
Google Scholar

European Commission (2015a), 30.09.2015 COM(2015) 468 final Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Action Plan on Building a Capital Markets Union {SWD(2015) 183 final} {SWD(2015) 184 final}.
Google Scholar

European Commission (2015b), 30.09.2015, SWD(2015) 183 final, Commission Staff Working Document Economic Analysis Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Action Plan on Building a Capital Markets Union {COM(2015) 468 final}{SWD(2015) 184 final}.
Google Scholar

European Financial Stability and Integration Review (EFSIR): A focus on Capital Markets Union (2016), European Commission, Brussels, 25.04.2016, SWD(2016) 146 final, Commission Staff Working Document.
Google Scholar

Feldstein M.S. (2015), Ending the Euro Crisis?, “NBER Working Paper”, no. 20862.
Google Scholar

Financial Services: Implementing the Framework for Financial Markets: Action Plan (1999), Communication of the Commission, COM(1999)232, 11.05.1999.
Google Scholar

Financial Services. Turning the Corner. Preparing the challenge of the next phase of European capital market integration (2004), European Commission, Brussels.
Google Scholar

Financing Europe’s Investment and Economic Growth. The shortcomings of Europe’s financial system must be addressed if investment and overall growth are to recover. Fixing the banks is not enough (2014), Report produced by Llewellyn Consulting for the IRSG, City of London, TheCityUK and Paris Europlace.
Google Scholar

Firoozmand S., Haxel P., Jung E., Suominen K. (2015), Report State of SME Finance in the United States in 2015, TradeUp Capital Fund and Nextrade Group, LLC.
Google Scholar

Geeroms H., Karbownik P. (2014), A Monetary Union Requires a Banking Union, Department of European Economic Studies, Bruges European Economic Policy Briefings 33 College of Europe, Brugge/Natolin.
Google Scholar

Global Top 100 Companies by market capitalization (2015b), PwC, https://www.pwc.com/gx/en/services/audit‑assurance/publications.html [accessed: 15.10.2016]
Google Scholar

Grauwe P. de (2013), Design Failures in the Eurozone – can they be fixed?, European Commission Directorate‑General for Economic and Financial Affairs, London School of Economics, London.
Google Scholar

Grauwe P. de (2016), Economics of Monetary Union, Oxford University Press, Oxford.
Google Scholar

Green Paper on Financial Services Policy (2005–2010) (2005), European Commission COM(2005) 177.
Google Scholar

Horvath R., Komarek L. (2002), Optimum Currency Area Theory: an Approach for Thinking about Monetary Integration, “Warwick Economic Research Papers”, no. 647, Department of Economics, University of Warwick.
Google Scholar

http://ec.europa.eu/eurostat/statistics‑explained/index.php/National_accounts_and_GDP/pl [accessed: 15.10.2016].
Google Scholar

Janicka M. (2002), Proces tworzenia jednolitego rynku finansowego Unii Europejskiej – stan obecny i perspektywy, “Bank i Kredyt”, no. 6, pp. 19–31.
Google Scholar

Janicka M. (2005), Jednolity rynek finansowy Unii Europejskiej – początek kolejnego etapu – “Zielona Księga”, “Bank i Kredyt”, no. 9, pp. 42–54.
Google Scholar

Kouretas G.P., Vlamis P. (2010), The Greek Crisis: Causes and Implications, “Panoeconomicus”, no. 4, pp. 391–404.
Google Scholar

Majone G. (2012), Rethinking European Integration after Debt Crisis, “Working Paper”, no. 3, The European Institute, London’s Global University, London.
Google Scholar

Meltzer A.H. (1996), Monetary Union: Benefits, Costs and a Better Alternative Research Showcase @ CMU, Tepper School of Business, Carnegie Mellon University, Pittsburgh.
Google Scholar

Molle W. (2000), Ekonomika integracji europejskiej, Fundacja Gospodarcza, Gdańsk.
Google Scholar

Moloney N. (2014), EU Securities and Financial Markets Regulation, Oxford University Press, Oxford.
Google Scholar

Obstfeld M. (2013), Finance at Center Stage: Some Lessons of the Euro Crisis, European Commission, Directorate‑General for Economic and Financial Affairs, Economic Papers 493, April 2013, http://ec.europa.eu/economy_finance/publications/economic_paper/2013/ecp493_en.htm [accessed: 15.10.2016].
Google Scholar

Pessoa A. (2013). Regional integration and the euro crisis: problems and solutions, Faculdade de Economia, Universidade do Porto, http://www‑sre.wu.ac.at/ersa/ersaconfs/ersa13/ERSA2013_paper_01153.pdf [accessed: 20.11.2016].
Google Scholar

Petrakos G. (2014), Economic Crisis in Greece. European and Domestic Market and Policy Failures, “Région et Développement”, no. 39, http://region‑developpement.univ‑tln.fr/fr/pdf/R39/1‑Petrakos.pdf [accessed: 11.10.2016].
Google Scholar

Principles for a European Capital Markets Union. Strengthening capital markets to foster growth (2015), “Deutsche Boerse Group, Policy Paper”, February.
Google Scholar

Reports of the Advisory Scientific Committee ESRB (2014), Is Europe Overbanked?, no. 4/June.
Google Scholar

Risk capital markets, a key to job creation in Europe. From fragmentation to integration (1999), “Euro Papers”, no. 32.
Google Scholar

White Paper Financial Services Policy 2005–2010 (2005), European Commission, Brussels.
Google Scholar

www.imf.org
Google Scholar

Zielińska K. (2016), Financial Stability In The Eurozone, “Comparative Economic Research”, vol. 10, no. 1, pp. 157–177.
Google Scholar

Zika J. (2006), Costs and benefits of a monetary union, Term Paper 2005/2006, European Economic Policies, IES FSV UK 2006.
Google Scholar

Downloads

Published

2018-02-27

How to Cite

Janicka, M. A. (2018). Capital Market Union – Perspectives on Changes in the Financial System Model in the European Union. Acta Universitatis Lodziensis. Folia Oeconomica, 1(333), [195]–206. https://doi.org/10.18778/0208-6018.333.13

Issue

Section

Articles