Oliver Wyman – European Capital Markets Report

The European capital markets are facing a loss of competitiveness compared to the United States, posing a threat to innovation, transformation, and financial support for an aging population in Europe. Despite efforts to create well-functioning and harmonized markets, Europe still lags behind in market capitalization and liquidity compared to the US. The smaller capital pools in Europe, driven by risk aversion and lack of incentives, hinder the full potential of its capital markets. However, success stories in countries like Sweden and Denmark show that leading capital markets are possible within Europe. To boost the European capital markets, steps need to be taken to activate demand, enhance financial literacy, incentivize long-term investments, promote internationally, and improve access for small- and medium-sized companies. These measures aim to improve investor outcomes and attract more investors, creating more investment opportunities and building momentum in the European capital markets.