Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Euronext CEO Stéphane Boujnah on Thursday voiced support for German Chancellor Friedrich Merz’s call for a consolidated European stock exchange, an initiative aimed at bolstering European companies and fostering economic growth. This endorsement comes as Euronext, which operates multiple exchanges across the continent, continues its efforts to integrate European markets.
Calls for Market Consolidation
Chancellor Merz advocated for a unified European stock exchange during a speech to the German parliament, arguing that it would prevent successful companies, such as Germany’s BioNTech, from seeking listings on foreign exchanges like the New York Stock Exchange. Euronext, which manages exchanges in Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo, and Paris, has long pursued a strategy of consolidation to address what figures like former European Central Bank President Mario Draghi have identified as an overly fragmented market.
In an emailed statement, Boujnah emphasized Euronext’s belief in the strength of European cooperation. “Euronext is ready to contribute to the next level of consolidation of markets in Europe to create a deeper liquidity pool to finance the growth of European companies,” he stated.
Deutsche Boerse’s Perspective
Deutsche Boerse, Germany’s stock exchange operator, also welcomed Merz’s call for stronger capital markets. The company attributed the stagnation of initial public offerings (IPOs) in Europe to market fragmentation. According to Deutsche Boerse, the European Union’s market structure, with over 500 trading venues, is not only the most fragmented globally but also the least transparent, with approximately 70% of stock trading occurring outside transparent exchanges.
Key Takeaways
The convergence of sentiment from major market operators and political figures highlights a growing consensus regarding the need for greater integration within European capital markets. The objective is to create a more robust and liquid environment to support European businesses and enhance the region’s competitiveness on the global financial stage.
