On the 20th of March, the European Capital Market Institute (ECMI) published a commentary by Karel Lanoo, General Manager of ECMI and CEO of Center for European Policy Studies (CEPS), named “Can Europe’s finance sector resist COVID-19?” which acknowledged that Europe is back in crisis mood.
Indeed, the commentary premised that “in a matter of only three weeks, Europe has turned from boom to bust for markets and businesses. Von der Leyen’s positive and strategic agenda has again been overtaken by the need to respond to the urgency of the moment and to try to keep the EU together”.
The author firstly stated that the upside of the current situation is that prudential and market conduct rules have been harmonised and the soundness of banks can be compared instantly, while the downsize consist of the fact that the banking sector and the capital market union initiative have still unfinished business.
The author also remarked that “in these crucial days for Europe and financial markets, it is of utmost importance that the mistakes of the previous crisis are not repeated”.