Capital Markets Union for Gulf Cooperation Council - Research Paper Example

The paper “Capital Markets Union for Gulf Cooperation Council” is a cogent example of a finance & accounting research paper. This research aims at investigating the merits of the EU Capital Markets Union in terms of how favorable it is in ensuring the stability of other financial markets, especially the GCC. In general, different financial markets perform uniquely to monetary policies and principles adapted. The UK financial market differs from the Gulf financial market as well as the EU markets.

As a result, various governments charged with the task of overseeing that financial markets are provided with favorable fiscal policies have drafted and deployed policies that encourage higher performance, low risks to investment, and supported low inflationary effects. Such financial markets have come to existence through the integration of financial policies and business scopes of various nations such as the EU in the development of its Capital Markets Union approach (Al-Bassam, n.d). In addition, other unions such as GCC countries have also tried for a period of time to integrate their financial markets so that they can attract the benefits of monetary unity across the region and attain better financial systems in terms of generating income to member nations while at the same time limiting risks associated with exchange rates and the corresponding costs.

Following the fact that the Euro Zone has performed sustainably for the past 10 years, it is seen that some of the challenges financial unions have been associated with financial crises. As a result, when companies have a few sources of funds, the EU found out that the economy is in jeopardy, and therefore policies that allow more funding alternatives are necessary. While the EU has been successful in establishing the Euro Zone, other policies such as the EU’s CMU serve as policies for improving the robustness of the financial markets while at the same time limiting finance-associated risks. 1.1.

Background InformationBalanced economies are found to result from strategically developed financial markets. Poor nations are found to lack the financial market development required to guarantee the balancing of their economies.