Carsten Kengeter, CEO, Deutsche Börse, gave a speech on "The future of European capital markets"
On 29 November 2016, Carsten Kengeter, CEO of Deutsche Börse AG, held a lecture on “The future of European capital markets”. The event was supported by Deutsche Börse and was aimed primarily at students. Jan P. Krahnen, CFS Director, welcomed Mr. Kengeter to Goethe University’s House of Finance, and moderated the discussion following the talk; the event was followed by a get-together.
In his talk, Kengeter referred to the EU’s Capital Market Union (CMU) project as the basis for strengthening the role of stock markets in funding Europe’s small and medium-sized firms. He emphasized the need for pan-European regulation, like insolvency laws, disclosure requirements and rule enforcement. Moreover, a stronger and more unified capital market and an appropriate single rulebook would increase equity capital mobility across Europe, thereby partly substituting for a closer fiscal union.
The fundamental idea of the CMU is to help the European economy grow, and more specifically to supply EU entrepreneurs with financing by widening the range of options available. On the other side of the problem, there are investors (institutions and households) who seek opportunities to put their capital into good hands. Hence, a network of bridges connecting both of them with capital markets has to be built to facilitate matching. The final ingredient mentioned by Kengeter to change the political and economic climate and promote entrepreneurial behavior. All these measures will foster business activities which will then result in innovations. These in turn will strengthen Europe’s competitiveness on the world stage.
What is more, the CMU’s advantages also include deepening capital market integration, maintaining political independence and decreasing the burden on the financial industry.
As for Deutsche Börse, it has already started its initiative Venture Network, which connects ideas with Venture Network, and continues to work on contributing further to the goals of the CMU.
Anna Polanska, CFS