German Chancellor Merz Urges Breakthrough for Unified EU Capital Market to Rival U.S.
German Chancellor Friedrich Merz issued a renewed and urgent plea on Monday for the European Union to finally realize a unified capital market, framing the long-delayed project as a critical step for the bloc's economic sovereignty and competitiveness.
Speaking at the Deutsche Börse's New Year's reception near Frankfurt, Merz emphasized the need to move beyond rhetoric. "The time for promises is over. We must now deliver an open European capital market, complete with the robust financial infrastructure it requires," he stated.
His appeal underscored a strategic concern: the flight of Europe's most promising startups to U.S. exchanges. "A prerequisite for our future is seeing the stock market launches of our dynamic, young companies here in Europe and Germany, not repeatedly and by default on Wall Street," Merz added, citing the example of German vaccine pioneer BioNTech, which listed on Nasdaq in 2019.
Long-Stalled Vision Gains Political Momentum
This is not a new theme for Merz, who first advocated for a "European Stock Exchange" in the Bundestag last October. The goal is to harness the full potential of the EU's internal market, making it easier for companies to raise capital and for savings to flow into investments for green and digital transitions.
However, the plan for a Capital Markets Union (CMU), a flagship EU initiative conceived nearly a decade ago, remains mired in complexity. Progress has been stalled by deep-seated national differences in areas like insolvency law, taxation, and financial supervision.
Competitiveness Summit Looms
Merz intends to place the issue squarely on the agenda at a special EU summit focused on competitiveness scheduled for February 12. For the German chancellor, cutting the bloc's notorious bureaucratic red tape is the essential first step toward unlocking the estimated trillions of euros in private capital needed to close the investment gap with the United States and China.
Analysts suggest Merz's forceful push reflects growing anxiety in Berlin and other European capitals about de-industrialization and a widening innovation deficit. A seamless capital market is seen not just as a financial tool, but as a bedrock for strategic autonomy.
Reader Reactions:
Klaus Berger, Financial Analyst in Berlin: "Merz is absolutely right. The CMU is the single most important unfinished project for the EU's economic resilience. Every year of delay costs us growth, jobs, and future champions."
Elena Moretti, Small Business Owner in Milan: "As someone who tried to secure growth funding, the fragmentation is a nightmare. A true EU-wide market would be a game-changer for SMEs across the continent. I hope this time it's different."
Dr. Henrik Vogel, Economist (Commentary appears on his popular blog 'Euro-Skeptic'): "More empty talk from the Brussels bubble. They've been 'pushing' for this for a decade while adding new regulations daily. Merz's 'urgency' is a political performance. The national governments, including Germany, are the ones who consistently block the necessary reforms to protect their own financial centers. It's a farce."
Sophie Laurent, University Student in Paris: "If this makes it easier to invest in European green tech startups, I'm all for it. We need to fund our own future, not always look across the Atlantic."