German Chancellor Advocates for a Pan-European Stock Exchange

On October 16, 2025, German Chancellor Friedrich Merz called for the establishment of a pan-European stock exchange during a speech to the Bundestag. This initiative aims to enhance the competitiveness of European companies against their U.S. and Asian counterparts. Merz emphasized the necessity for a "sufficiently broad and deep European capital market" to enable faster and better financing for businesses. He expressed concern that successful firms, such as Mainz-based BioNTech SE, are opting to list on the New York Stock Exchange rather than within Europe, which he views as detrimental to the continent's economic future.

Merz calls for pan-European stock exchange

Stéphane Boujnah, CEO of Euronext, welcomed Merz's proposal, stating that the exchange is prepared to contribute to the consolidation of European markets. Euronext operates exchanges in Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo, and Paris, and has been advocating for a unified market to create a deeper liquidity pool for financing European companies. Boujnah reiterated the belief that collaboration among European markets is essential for success.

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The current landscape of European stock exchanges is characterized by fragmentation, with over 500 trading venues leading to inefficiencies and a lack of transparency. Deutsche Boerse, Germany's stock exchange operator, echoed Merz's sentiments, attributing the challenges faced by initial public offerings (IPOs) in Europe to this fragmentation. The firm noted that only about 30% of stock trading occurs on transparent exchanges, which hampers the growth potential of European firms.

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Merz's call aligns with findings from reports by former European Central Bank President Mario Draghi and ex-Italian Prime Minister Enrico Letta, which highlighted the urgent need for reforms in the EU's capital markets. These reports advocate for a radical overhaul of the single market to unify equity and commodity exchanges, as well as bond markets. Merz emphasized that Europe must undergo fundamental changes to boost productivity, including reducing regulatory burdens and fostering innovation.

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Despite the support for a pan-European stock exchange, there are concerns regarding the feasibility of such an initiative. Critics argue that the complexities of unifying diverse regulatory environments across EU member states could pose significant challenges. Additionally, there is skepticism about whether a single exchange could effectively compete with established markets in the U.S. and Asia.

Merz calls for pan-European stock exchange

• “It is crucial for the future of our country and our countries in Europe that we fulfill these tasks with renewed vigor,” — Friedrich Merz, German Chancellor

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• “Euronext is ready to contribute to the next level of consolidation of markets in Europe to create a deeper liquidity pool to finance the growth of European companies," Boujnah said in an emailed statement.” — Stéphane Boujnah, CEO of Euronext

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The proposal for a pan-European stock exchange will be a key topic at the upcoming European Union summit, where leaders will discuss strategies to enhance the EU's economic competitiveness. The success of this initiative will depend on the ability of member states to navigate regulatory complexities and foster collaboration among various financial markets.

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