The Euro Capital Market Daniel Gros and Karel Lannoo The start of monetary union on 1 January 1999 launched a process of radical change in the structure of capital markets in Europe. Whereas previously, Europe had been fragmented into many diverse national markets, a single Euro capital market is now emerging. This book focuses on the long–term impact that the introduction of the euro will have on European capital markets and spells out implications for the financial sector and the wider economy. It discusses what further steps need to be taken to achieve a fully integrated market. In particular, the book examines:∗ The institutional and regulatory framework for European capital markets∗ The structure of European capital markets on the eve of EMU∗ The regional differences and the contrasts with the US capital market∗ The central role played by banks in European capital markets and the likelihood that a more market–based system may emerge∗ The implications of EMU for organised securities markets∗ The consequences for governance and policy, and more; in particular for the taxation of savings income, securities market regulation and financial supervision.Foreword by Dr Padoa–Schioppa, European Central Bank Finance/investment