European Single Stock Exchange Mooted, Even if Execution Will Be Hard

Europe could be getting a single stock exchange that covers all the publicly listed firms in the trading bloc. The existing Pan-European stock exchange, Euronext, says it’s ready to help push Europe toward a consolidated equity market. The idea is to pool liquidity so European companies can raise capital at home instead of looking to New York. 

Euronext already lists about 1,700 companies worth roughly €6.5tn, and argues that harmonising markets could unlock more of the EU’s €13tn in private savings while trimming compliance overlap. 

Some figures are worried about how this will be supervized. Some advocates want more authority centralized at the European Securities and Markets Authority (ESMA) to reduce fragmentation across listings. 

Brussels is preparing proposals on a common supervisory framework for selected institutions, from CSDs to trading platforms and even crypto-asset service providers, but national politics remain a challenge. Although major economies like Germany are keen on deeper integration, several member states warn of higher fees and lost control if oversight shifts to the EU level. 

What Does This Mean for Me?

The competitiveness case is urgent. Europe continues to lose listings and valuations to the US, where deeper pools and simpler rules are much more attractive. Sweden’s Klarna, valued near €11.5bn, chose a US IPO this year, and others have shifted operations to tap American capital. 

Even so, research houses caution that a single exchange logo won’t magically fix thin liquidity, uneven IPO pipelines, or divergent risk appetites across DAX, CAC, IBEX and beyond.