Aiming to become the European substitute for London's financialscene.

Aiming to become the European substitute for London's financialscene.

A Blunt Assessment from Euronext CEO: Europe Needs a Kick in the Pants

Stéphane Boujnah, the outspoken CEO of Euronext, has issued a stark warning to Europe: get your act together or risk falling behind. Boujnah views Donald Trump's re-election as a damn wake-up call - a sign that the US is making moves without a damn care for anyone else, solely pursuing its own interests.

Boujnah, who took the helm of Euronext in 2015 and expanded the company from a four- to a seven-country exchange, believes Europe must accelerate its pace of integration and produce more European champions to stay afloat. If Europe wants to remain relevant in the financial markets, Boujnah emphasizes, they need to quicken the damn decisions and produce some bigger players.

In Boujnah's opinion, Europe needs a "single prospectus for IPOs, similar to what the US calls S1-form." This strategy would initially be implemented at the seven exchanges of the Euronext group and eventually extended to other major markets like Germany and Spain. The aim is to bolster competitiveness in IPOs, ultimately making Europe a platform that could replace London.

Despite his optimism that the year ahead will be a much more dynamic one for IPOs than 2024, Boujnah sounds a warning: "The lack of capital is our biggest weakness." Boujnah advocates for the introduction of a capital-funded pension system, as liquidity is the driving force behind every IPO market. It's about channeling household savings to capital markets and creating "a new risk perspective," as banks and insurers have high barriers to capital investment.

Initially, Boujnah had pitched the idea of a joint IPO platform with Deutsche Börse in 2023. However, he's since dumped the idea, stating it's like building a regional airport that no airline flies to.

Now, Boujnah is focusing on internal expansion to maintain Euronext's position as a key player in the financial world. By streamlining operations, consolidating the ETF market, and focusing on strategic acquisitions, Boujnah aims to position Euronext – and Europe more broadly – as a resilient financial hub amidst global economic shifts.

Boujnah is calling on Europeans to harness their financial resources and market structure to enhance competitiveness. Key proposals include mobilizing European capital, strengthening strategic mergers and acquisitions, addressing global trade shifts, focusing on operational efficiency, and centralizing ETF listings. Europe needs to follow Boujnah's advice, or risk being left in a weak and comfortable position.

1. Stéphane Boujnah, CEO of Euronext, believes that Europe needs a "single prospectus for IPOs" similar to the US's S1-form, to bolster competitiveness and replace London in financial markets.
2. Donald Trump's re-election, according to Boujnah, serves as a wake-up call for Europe, demonstrating the US's unapologetic pursuit of its own interests, which Europe must emulate to stay relevant in business and finance.
3. boujnah advocates for the introduction of a capital-funded pension system to address European markets' lack of capital, essential for attracting IPOs and fostering a dynamic business environment.
4. Initially pitched in 2023, Boujnah has abandoned the idea of a joint IPO platform with Deutsche Börse, now focusing on internal expansion instead to maintain Euronext's position as a key player in the global financial landscape.
5. Boujnah's call to action for Europe includes mobilizing European capital, strengthening strategic mergers and acquisitions, addressing global trade shifts, focusing on operational efficiency, and centralizing ETF listings, to ensure Europe remains competitive in the rapidly changing financial world.

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