Capital Markets Union Key Performance Indicators – Fourth Edition European Capital Markets – a turning point?

25/10/2021 | AFME

Foreword

European capital markets have experienced another eventful year marked by the recovery from the economic stress caused by the Covid-19 pandemic and the end of the Brexit transition period, among other developments. While last year’s edition of the industry’s Capital Markets Union (CMU) KPIs report showed there has been significant progress on the development of the CMU since the launch of the project in 2015, I am pleased to observe that the positive trajectory has continued this year.

Due to the impact of COVID-19, there has been a greater need for corporates to raise funds through capital markets. On this front our latest report points to positive developments, as capital markets have further increased the provision of funding to corporates. However, there is no room for complacency: a structural and pandemic-induced “equity gap” remains and equity-type finance still needs to be expanded in Europe. It also remains to be seen to what extent these record market-based financing levels can be sustained in more normal economic and market conditions, or whether they are a temporary result of the extraordinary support measures of the past year.

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