Overview

• ECB President Christine Lagarde calls for a European Securities and Exchange Commission and the creation of a single capital market to help raise the trillions of dollars needed to meet the challenges of deglobalization, depopulation and decarbonization.
• Lagarde suggests replacing the EU's national-level supervisor bodies with a single Europe-wide financial regulator to solve the problem of EU rules being applied unevenly.
• The green transition alone will require additional investment of $672 billion every year, on average, until 2030, and a further $136 billion per year will be needed for the digital transition.
• European start-ups attract less than half the funding of American ones while investment in scale-ups is four-fold that of Europe.
• Lagarde warns that the EU can't rely on the existing framework to finance this investment and that a capital markets union (CMU) is indispensable.