Responses to consultations

Public Consultation

The ESM has submitted its response to the European Commission’s public consultation “Building a Capital Markets Union”. The ESM welcomes the aim to create a Capital Markets Union, as it would promote financial stability and economic growth by creating alternative funding channels for SMEs (small and medium entreprises) and corporates beyond bank financing. A Capital Markets Union would also facilitate the ESM’s work as a major issuer and investor.This paper studies the link between sovereign risks and the fragility of the banking sector pointing to the challenges of bank rescue operations for the state. 

Author: European Stability Mechanism

Date: 12 May 2014