ABSTRACT
This chapter focuses on the European Union (EU's) approach to redesign its capital markets in order to increase its growth potential and overall competitiveness, whilst also aiming at increased financial stability. It introduces what capital markets are and discusses evolution and challenges. The chapter identifies key questions and concerns about the new strategies to redesign capital markets based on theoretical debates about financialisation, varieties of capitalism and integration. It describes that there are significant problems with Commission's approach and an alternative approach would be necessary for more resilient financing of the real economy'. Capital markets play a crucial and increasing role in contemporary capitalism. The joint committee of the European Supervisory Authorities concluded that financial system risks in the EU have intensified, yet hopes that implementation of recent capital markets reforms and introduction of a Capital Markets Union (CMU) reverse the trends. Major elements of the Commission's strategy to boost economic recovery are an Investment Plan and a CMU.
