Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/142187
Authors: 
Acharya, Viral V.
Steffen, Sascha
Year of Publication: 
2016
Series/Report no.: 
ZEW policy brief 4/2016
Abstract: 
In 2016, the Eurozone is still coping with the consequences of two financial crises that revealed the shortcomings of an incomplete monetary union. The European economy suffered two severe recessions and a sustainable growth path is still elusive. Risks in the banking system and a severe banking sector debt-overhang played a major role in both crises as Eurozone firms are heavily reliant on bank financing. To foster economic growth in the Eurozone, the European Commission suggested the creation of a capital markets union, in which local capital markets are developed further and integrated across borders as alternative sources for corporate finance. In this paper, we argue that a capital markets union cannot work without a banking union and fiscal union in place.
Document Type: 
Research Report

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