Can the banking union foster market integration, and what lessons does that hold for the capital markets union?

We address the role of the Banking Union (BU) in promoting market integration and the lessons it provides for the Capital Markets Union (CMU). First, we tackle BU's establishment, exploring whether it has achieved its original goals and discussing its main shortcomings. Second, we address market integration in the BU. Third, we advance some proposals to finalise the BU accelerating effective market integration. Fourth, we explore various BU-CMU interconnections, introducing policy-related considerations to support the development of a well-functioning CMU. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the ECON Committee.