Avoiding a Brexit will be crucial for the success of Europe’s Capital Markets Union

An EU Capital Markets Union has been proposed with the aim of providing a boost to Europe’s economy by creating funding channels between providers of loanable funds and the firms best placed to use them. Umberto Marengo writes on the potential benefits from the system and some of the key issues that could undermine its implementation. He argues that Britain’s secession from the EU would have negative consequences for capital flows, and would not only spell the end for the Capital Markets Union, but could also close the door to British financial industry in Europe at a time when its services would be much needed.