Germany’s CSU Backs Move for a Unified European Stock Exchange

Germany’s Christian Social Union (CSU) — the Bavarian conservative party allied with Chancellor Friedrich Merz’s Christian Democratic Union (CDU) — has publicly committed to advancing the idea of a single European stock exchange. The move is intended to strengthen Europe’s capital markets, make the region more attractive for companies, and help keep successful firms based in Europe.

Support for Consolidated Capital Markets

According to a draft internal CSU document obtained by Reuters, the party supports efforts to reinforce and unify capital markets across the European Union. The CSU believes that a consolidated exchange could provide deeper liquidity, reduce fragmentation, and encourage more initial public offerings (IPOs) within Europe. A key concern cited is that Europe’s current system — made up of many smaller exchanges with different regulations and supervision — puts the region at a disadvantage versus the United States, where the New York Stock Exchange dominates global listings.

The CSU’s draft paper says the party intends to take a clear leadership role in the planning process, including advocating for the new exchange’s headquarters to be located in Germany, the EU’s largest economy. This geographical ambition underscores Berlin’s desire to make Germany a central hub in the evolving European financial landscape.

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Political Momentum and Key Backers

The announcement by the CSU comes just days before the start of the party’s three-day annual meeting in Seeon, Bavaria. The broader initiative for a unified exchange originally surfaced in October when Chancellor Merz first proposed bolstering Europe’s competitiveness as a business location.

Support for the concept goes beyond the CSU. Influential figures including European Central Bank President Christine Lagarde, German Finance Minister Lars Klingbeil, and Bundesbank President Joachim Nagel have been identified as backers of a more integrated European capital market. Proponents argue that combining market forces and regulatory oversight could help stem the flow of European companies listing in the U.S. and provide deeper domestic capital pools.

Challenges Ahead

Despite political backing, realizing a unified European stock exchange would be a complex endeavor. It would require coordination among EU member states, alignment of regulatory frameworks, and buy-in from existing national exchanges. However, supporters see it as a necessary step toward enhancing Europe’s financial sovereignty and competitiveness on the global stage.