Closing European financial markets would have ‘devastating’ impact on economy

Written by Adam Cadle

23/03/2020

A group of ten financial associations, including Insurance Europe, have written to several European and national policymakers to emphasise the importance of keeping European financial markets open during the COVID-19 pandemic.

“Financial markets are critical infrastructure for the European economy,” the associations stated.

“The markets continue to serve the needs of participants to raise capital, manage investments, access cash and manage risk that affects both retail and institutional investors. Under your stewardship these markets are prepared to withstand extraordinary volatility and stress under which they are now operating.”

The associations added that closing the markets would have a “devastating impact” on the European economy.

Addressing the policymakers, the letter stated: “We believe a joint statement by you to signal that European markets will continue operating is essential to build market confidence, and to emphasise that markets are needed most during times of economic uncertainty.”

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