Deeper and More Integrated Financial Markets to Foster Growth and Resilience in Europe

2026

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This IMF Staff Discussion Note argues that deeper and more integrated financial markets in Europe could significantly boost GDP growth and enhance economic resilience by addressing fragmentation and policy-induced barriers.

* Analyzes policy-induced barriers that impede cross-border bank lending and limit venture capital.
* Quantifies the macroeconomic benefits of financial reforms, estimating a potential GDP increase of around 3 percent.
* Proposes a reform agenda including advancing the banking union, harmonizing insolvency law, and strengthening risk capital supply.

Tags: financial markets, Europe, growth, resilience, integration

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