Tapping into the full potential of EU Capital Markets

Solving monopoly issues in the EU Capital Market Infrastructure can boost EU GDP by at least EUR 52 billion over the next decade, corresponding to 0.3% of GDP in 2024. 

An Implement Consulting Group study commissioned by Finance Denmark analyses the growth potential lost due to monopoly issues in the EU Capital Market Infrastructure and explores how new regulation can address these issues to unlock the growth potential. 

Key findings of the study:

• EU Capital Market Infrastructure companies have evolved into powerful monopolies after three decades of liberalisation, industry consolidation, and insufficient competition.
• By addressing the monopoly issues in the EU Capital Market Infrastructure, the cost of capital for EU companies will be reduced by at least 0.16 percentage points, leading to a 0.09 percentage point increase in EU investment rate, which ultimately raises EU GDP by EUR 52 billion.
• To realise the economic potential, the EU Commission must introduce a future-fit regulation, which will incentivise Capital Market Infrastructure companies to behave as if they were subject to well-functioning competition