CMU and the Deepening of Financial Integration

Author(s):  
Diego Valiante

The integration of capital markets in the EU is a long-term and complex task that is far from being completed. A comparative analysis with capital markets integration and development in the United States can offer insights on how the EU can develop its policy framework to achieve a single market for capital. This chapter begins with a brief review of the history of European financial integration policies since its inception in 1957. It then illustrates how capital markets can provide significant risk absorption against exogenous shocks. Finally, it presents a brief overview of the United States' economic history between 1860s and 1930s. Analogies can be found with the European financial integration process, as well as benchmarks to identify areas where European policies can do more to promote a Single Market for capital.

2007 ◽  
Vol 1 (1) ◽  
Author(s):  
Emma Banks ◽  
Preeti Gill

The accession of Ireland, Greece, Spain and Portugal into the European Community was a significant move towards manifesting everlasting peace by means of a single market. The incorporation of these four weaker countries into the European Union (EU) marked a break from the EU’s traditional purview. The paradigm shift of the EU’s approach to enlargement placed Member States onto a path that would harness the full capabilities of a common market in improving civilians quality of life while simultaneously achieving individual Member States’ objectives including growth, employment, and trade. The regional effects of the EU’s single market are drastically different from the effects of the North American Free Trade Agreement (NAFTA). A much newer trading bloc (NAFTA came into effect on January 1, 1994), it lacks the wisdom and fine tuning of the EU. The governments of the United States, Mexico, and Canada signed the treaty1while hailing how it would “fuel economic growth and dynamic trade, stimulate investment while creating productive partnerships, work for small and medium sized businesses and provide fairness and certainty. NAFTA partners promote environmental protection, and provide greater job opportunities in North America”.2 Yet the effects seem to be the exact opposite. NAFTA has been called “one of the most innovative, astounding documents of the 20th century by the stoic…”3, but this so-called “innovative depth” has reduced barriers to trade and investment, without the necessary checks and balances. For Mexico, NAFTA merely expedited and formalized “the silent integration” that had been occurring since the Border Industrialization Project of 1965— without adding anything new to the table.4 Unlike the EU, NAFTA is a rigid document that has not reformed itself as needed to address issues of border control, immigration policies, and uneven socioeconomic development. In spite of sincere hopes for free trade and economic integration to raise living standards across the continent, the reality is that the unfettered markets have permitted NAFTA to persistently ignore the uneven economic development, and vulnerabilities each country faces. In so doing, the United States has been a quiet bystander to the inequalities proliferating from unchecked free trade. Both countries have been left vulnerable to NAFTA backlash. Mexico’s vulnerability stems from unsound economic development policies and overall slow growth. These factors have increased the US’ vulnerability, to migration. Fed up with uneven development, lack of job opportunities, poor working conditions, and low wages, many Mexicans are taking matters into their own hands and crossing the border, often illegally. Militaristic efforts to “defend” the border have done nothing but increase political tensions and migrant death tolls. NAFTA does not address the immigration problem and its root cause of unequal development. This paper begins with the European Union’s initial experience with enlargements and the experimentation process it underwent to reduce economic and social disparities between regions to further facilitate their single market objectives. After considering how the EU’s cohesion policy strengthened its own single market while simultaneously curbing migration, we present the NAFTA scenario, specifically against the backdrop of Mexico and the United States, in order to highlight the impotent mechanisms the United States relies upon to quiet the waves of economic migrants.


Subject EU's ePrivacy proposal. Significance Austria, as president of the Council of the EU for the second half of 2018, has made finalising the Regulation on Privacy and Electronic Communication or ‘ePrivacy Regulation’ (EPR) for the European digital single market a core priority. Impacts Critics argue that the EPR will further undercut the EU’s attractiveness as a digital economy hub compared to the United States and Asia. Advocates counter that, as with the GDPR, the EPR will reinforce the EU’s status as the agenda-setter in regulating the digital economy. Privacy rules and security considerations may collide.


Author(s):  
Debora J. Gilliard

Some extraordinary events have been taking place in the European Union in recent years. This group of countries has introduced a new currency, has expanded to a 25 member country single market, and is in the process of implementing a European Union constitution. Because these events will have an impact on the United States and on global business, it is important to monitor and evaluate activities of the EU. This paper briefly reviews the development of the European Union, then discusses recent events and the implications of European Union activities for business, and looks at future possibilities for the EU.


Author(s):  
Steven L Schwarcz

Securitisation represents a significant worldwide source of capital market financing. European investors commonly invest in asset-backed securities issued in U.S. securitisation transactions, and vice versa One of the key goals of the European Commission's proposed Capital Markets Union (CMU) is to further facilitate securitisation as a source of capital market financing as a viable alternative to bank-based finance for companies operating in the EU. To that end, this chapter explains securitisation and attempts to put its rise, its decline after the global financial crisis, and its recent CMU-inspired revival into a global perspective. It examines not only securitisation's relationship to the financial crisis but also post-crisis comparative regulatory approaches in the EU and the United States.


Publications ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 18
Author(s):  
Mauro G. Carta ◽  
Matthias C. Angermeyer ◽  
Silvano Tagliagambe

The purpose is to verify trends of scientific production from 2010 to 2020, considering the best universities of the United States, China, the European Union (EU), and private companies. The top 30 universities in 2020 in China, the EU, and the US and private companies were selected from the SCImago institutions ranking (SIR). The positions in 2020, 2015, and 2010 in SIR and three sub-indicators were analyzed by means of non-parametric statistics, taking into consideration the effect of time and group on rankings. American and European Union universities have lost positions to Chinese universities and even more to private companies, which have improved. In 2020, private companies have surpassed all other groups considering Innovation as a sub-indicator. The loss of leadership of European and partly American universities mainly concerns research linked to the production of patents. This can lead to future risks of monopoly that may elude public control and cause a possible loss of importance of research not linked to innovation.


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