Capital markets in Europe currently lack the necessary depth, scale and integration to provide the funds for innovative firms to grow, thereby imposing a high cost on both firms and investors. In response to this grave deficiency, Karel Lannoo calls upon the European Commission to undertake a radical upgrade of the Capital Markets Union (CMU), along the lines of the Single Supervisory Mechanism (SSM), but with a focus on strengthening the role of the European Securities and Markets Authority (ESMA) and the European supervisory authorities (ESAs). Given that much of the rulemaking is complete, he observes that an empowered capital markets supervisor is the only way to deliver the benefits of a single market.

Karel Lannoo is Chief Executive Officer of CEPS and General Manager of ECMI.