Even six years after the financial crisis of 2008, the
limited scale of the E.U.’s capital markets relative to their American
counterparts exacerbated the E.U.’s problems with state debt. Most directly, the lack of
diversification on the types of capital markets meant that the focus on the
bonds issued by state governments would continue.[1] Having had years to develop alternative markets
since the financial crisis, E.U. policy makers had no one to blame but
themselves—it would seem. However, a bright spot in European culture may be responsible for the lack of development.
The full essay is at “Deficiencies
in the E.U. Capital Markets.”
1. Simon Nixon, “A Continent in Need of Greater Capital Markets,” The Wall Street Journal, January 20,
2015.
