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Policymakers must keep EU financial markets open during COVID-19 pandemic

A group of ten associations representing a wide range of financial services companies, exchanges, funds and consumers – including Insurance Europe – has written to several European and national policymakers to emphasise the importance of keeping European financial markets open during the COVID-19 pandemic.

Financial markets provide critical infrastructure for the European economy. They serve the needs of participants to raise capital, manage investments, access cash and manage risk in ways that affect both retail and institutional investors. These markets are also prepared to withstand the extraordinary volatility and stress under which they are now operating.

However, closing the markets would have a negative impact on the European economy. In fact, even persistent rumours about closing the markets are themselves already causing adverse effects. This is because some market participants are taking steps, which they otherwise would not, to act ahead of a rumoured market closure.

The signatories therefore call on policymakers to make a joint statement to signal that European financial markets will continue to operate. This is essential to build market confidence and to emphasise that markets are needed most during times of economic uncertainty.

Published 23 March 2020