Thedéen: "There are no miracle cures to make capital markets function smoothly"
Presentation “Improving the EU's capital markets is essential for the Union from an economic perspective, not least as a result of the digital and green transitions. Recent geopolitical developments, with major defence spending both nationally and at EU level, further underline this need. It is therefore positive that the European Commission has taken renewed initiatives in this area, and that it is highlighting the good examples that exist, including in Sweden and the other Nordic-Baltic countries,” said Governor Erik Thedéen today at a conference organised by the Confederation of Swedish Enterprise and the Government Offices of Sweden.
Date: 03/04/2025 11:45
Speaker: Governor Erik Thedéen
Place: Wisdome, National Museum of Science and Technology, Museivägen 7, Stockholm
Erik Thedéen, governor.
The theme of the conference was how the EU's capital markets can be developed to meet investment needs within the Union. Smoothly-functioning capital markets, that is, the channelling of savings into productive investment, are an important precondition for economic growth and prosperity. The European Commission has developed a strategy on how to develop capital markets within the Union to help boost Europe's productivity and competitiveness. The Commission believes that capital markets in the EU are generally underdeveloped, compared to the United States in particular, but that there are solutions in individual countries that work well, for example in the Nordic countries and not least in Sweden.
In a panel discussion during the conference, Erik Thedéen highlighted what he thinks is needed to make EU capital markets function more efficiently:
"To move forward, we need to recognise that there are no single miracle cures that will quickly create well-functioning capital markets. It requires a long-term, broad-based effort to build ecosystems capable of channelling savings into productive investment. The funding needs to reach many different types of businesses at different stages of development".
He continued:
“We also need to be pragmatic. There are definitely areas where pan-European solutions are warranted, but if we are to move forward quickly and effectively, we need to recognise that local and regional solutions can also play an important role. In this respect, we in the Nordic-Baltic region have long experience of cooperation and integration, which can serve as a model for other countries in the Union."