Europe’s businesses are struggling to access growth capital. While regions such as the US and Asia boast deep, liquid markets, Europe is falling behind. The result: innovative companies relocate or fail due to a lack of risk capital. The German government and five other EU member states (France, Italy, the Netherlands, Poland, and Spain – collectively known as the “E6”) are determined to change this. Their goal is clear: a European capital market must mobilise more capital, reduce bureaucracy, and provide investors with confidence. Only in this way, according to the E6, can Europe’s long-term economic sovereignty be preserved.
Key Measures for a Strong European Capital Market
The E6 are calling for concrete steps, including:
- Reforming private pensions: State incentives for capital market-based savings should attract new investment.
- Expanding financial education: A national strategy should ensure all citizens understand the opportunities and risks of capital markets.
- Supporting innovative companies, scale-ups, and IPOs: Following the French and German models, institutional investors should channel billions into European tech firms; more private capital should be mobilised for growing businesses, and barriers to initial public offerings should be lowered.
- Reforming EU law: A new uniform EU legal form (the “28th regime”) could facilitate cross-border scaling for start-ups.
- Simplifying securities trading: Harmonised custody and securities laws would promote cross-border transactions.
- Streamlining regulation: A “Financial Services Simplification Package” should cut red tape without compromising protection standards; a European Capital Markets Act should establish uniform rules.
Securitisation Markets Also in Focus
The E6 emphasise that securitisation can mobilise private capital, ease bank balance sheets, and thus strengthen lending to the real economy. They are pushing for the relevant trilogue negotiations to be concluded by autumn 2026.
Outlook
These reforms could lay the foundation for restoring Europe’s competitiveness and its position in global markets and geopolitics – for this, a high-performing capital market is essential. We welcome the E6’s insistence on timely results and progress towards an integrated European capital market.