Merz urges pan‑European stock exchange to boost capital
German Chancellor Friedrich Merz urged the creation of a pan‑European stock exchange to help companies raise capital faster and strengthen the European Union’s competitiveness versus firms in the United States and Asia.
He raised the proposal while addressing the Bundestag in Berlin ahead of next week’s EU summit. Merz argued the bloc’s fragmented network of national exchanges makes it harder for technology and biotech firms to secure timely funding at home. An example he gave was Mainz-based BioNTech’s decision to list in New York.
Supporters of the plan say a workable design would not necessarily replace existing exchanges overnight, but could federate them under a single order book with harmonized listing tiers, a consolidated tape, and uniform disclosure rules. Governance could sit with ESMA to ensure consistent oversight.
'We need a sufficiently broad and deep European capital market so they can finance themselves better and faster,'he told lawmakers.
Skeptics caution that consolidation could provoke resistance from smaller national bourses and raise concerns about market dominance, data fees, and the location of critical infrastructure. There is also the competitive question of how to interact with London’s markets and U.S. venues.
It is worth noting that Europe’s equity culture remains shallow compared with the United States, so a marquee exchange would need deeper pools of long-term savings.
The Chancellor of Germany also referenced policy reviews by former Italian prime ministers Mario Draghi and Enrico Letta that concluded the EU must accelerate reforms to close gaps in productivity and global competitiveness. He urged member states to speed up decision-making and reduce excessive regulation to improve investment and innovation.
Since taking office in early May, Merz has made investment, deregulation and an overhaul of the German economy central to his agenda and has pressed EU partners to pursue measures that make cross‑border listings and capital flows within the bloc easier. Earlier, the head of the ECB called for tighter supervision of shadow banks in Europe.
It is worth noting that Europe’s equity culture remains shallow compared with the United States, so a marquee exchange would need deeper pools of long-term savings.
The Chancellor of Germany also referenced policy reviews by former Italian prime ministers Mario Draghi and Enrico Letta that concluded the EU must accelerate reforms to close gaps in productivity and global competitiveness. He urged member states to speed up decision-making and reduce excessive regulation to improve investment and innovation.
Since taking office in early May, Merz has made investment, deregulation and an overhaul of the German economy central to his agenda and has pressed EU partners to pursue measures that make cross‑border listings and capital flows within the bloc easier. Earlier, the head of the ECB called for tighter supervision of shadow banks in Europe.
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