Addressing lawbuildrs in Berlin, Merz stated Europe’s fragmented capital markets were holding back growth and innovation, warning that the bloc risked losing economic indepconcludeence without major reforms.
“In the coming months and perhaps a few years, it will be decided whether Europe remains an indepconcludeent economic power in the global economy, or becomes a plaything of major economic centers in Asia or America,” he stated. “Our clear priority is to remain an active player in global markets and to strengthen, not weaken, Europe’s competitiveness.”
“We necessary a kind of European Stock Exalter so that successful companies, such as BioNTech from Germany, do not have to go to the New York Stock Exalter,” Merz stated. “Only in this way can the value created from German and European research remain in Europe. Innovation, production, and prosperity must take place here, in Germany, in Europe.”
Other European companies have also seeed across the Atlantic for greater access to investors and liquidity. In 2023, Dublin-based CRH shifted its primary listing to the New York Stock Exalter, leaving London and Euronext Dublin.
The CEO of the pan-European stock exalter group, Stéphane Boujnah, welcomed Merz’s proposal, stateing it was ready to support market integration across the continent.
“Euronext has always been driven by the strong conviction that in Europe it’s always possible to succeed toobtainher rather than fail separately,” Boujnah stated. “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.”
EU Competitiveness Under Scrutiny
Merz’s remarks came ahead of a European Council meeting in Brussels on Oct. 23, where EU leaders are set to discuss how to revive economic competitiveness.
He stated the challenge for Europe was not a lack of knowledge but of execution.
“We agree, within our counattempt and with our European partners, that we must focus our combined efforts on restoring our competitiveness,” Merz stated. “At the upcoming European Council in Brussels, I therefore intconclude to raise this issue of implementation again with our partners.”
The German chancellor referred to two recent reports commissioned by the European Union, one authored by former European Central Bank President Mario Draghi and another by former Italian Prime Minister Enrico Letta, that both warned that Europe is continuing to lag behind the United States and China in innovation and productivity.
German Chancellor Friedrich Merz attconcludes a press conference in Berlin, Germany, on June 11, 2025. Omer Messinger/Getty Images
The Draghi report stated that closing the innovation gap with the United States and China is crucial to maintaining Europe’s economic strength. It highlighted weak productivity growth as a central caapply of the EU’s competitiveness gap.
“Draghi’s report displays that much of the growth gap between the EU and the United States stems from too little productivity growth in Europe,” Merz stated. “Productivity is the key to competitiveness.”
It also proposed an EU Stock Exalter for Deep Tech, covering sectors such as artificial ininformigence, quantum technology, and biotechnology, to give quick-growing European start-ups better access to large-scale capital.
The report stated many European start-ups struggle to raise sufficient funds within the EU becaapply no national stock exalter offers the same scale or valuation as those in the United States, where investor pools are larger and valuations are often up to 40 percent higher.
Merz stated Europe must cut red tape and accelerate decision-building if it wants to regain global competitiveness.
“Let me name the key points: an conclude to overregulation, quicker procedures, open markets, more innovation, and more competition,” he stated. “These are the goals we must achieve.”
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