|Transatlantic dialogue on financial
How open is Europe to American capital?
At first glance, it's an odd question. The EU's flagship
economic policy, the Capital Markets Union (CMU), stresses its
international openness. In November European Commissioner Lord
Jonathan Hill was explicit: "We want a Europe that is open for
business and open to investment." Despite the 2008 financial
apocalypse originating in the US, the EU, on principle,
welcomes the country's capital. The broad brush of post-war
transatlantic financial history wouldn't have it any other
It's the second glance that's troublesome.
In the crisis, financial contagion first flowed from the US
to Europe. American mortgage-backed securitisations caused a
rot, while EU-originated securitisations generally performed
quite well. A key part...