Integrating Europe’s securities markets : the way forward

Abstract

Ever since its inception, the European Union has sought to dismantle internal barriers and create an area that guarantees the free movement of goods, persons, services and capital. The creation of a Single Market was conceived as a solid economic project designed to encourage the unhindered mobility of commodities on a Community-wide basis, thereby placing all European producers, service providers and consumers on a single platform in a bid to enhance cost-effectiveness and efficiency. The European securities industry is no exception. The construction of a single market for securities, where investment service providers and investors can access markets situated all across the Union, and where issuers may do likewise in order to raise capital, has been promoted by the EU ever since the early days of its existence. The rationale for this initiative is founded on the premise that a common financial market will reduce the cost of capital for companies looking to finance their operations through the market while endowing investors with a greater choice of financial products and investment services. The resultant increase in market financing and investment activity will strengthen the European economy and consequently uphold its standing on a global level.