Toward the Future EU Growth: Capital Markets Union and Structural Reforms

Abstract

The progress of globalization confronts the EU with the new challenges. To answer these, the restoration of growth is the imperative. The competitiveness especially on the Mediterranean littoral and hopefully the real convergence must be restored. Renewal of the North to South capital flows is the sine qua non of this development. The key in this endeavor is the capital markets union, which will facilitate the increased activities of the venture capital – the main tool to create the new economy of innovation and creativity. But to be successful the capital markets union has to be complemented by reforms of labor markets, business creation environment and taxation. New approaches like special “economic innovation and growth” zones may be necessary. To fully implement the necessary structural reforms the cooperation of the private and public sectors on both the EU and national levels is necessary.