Foreign bond issues in European markets

Abstract

After the presentation of the project to introduce an “interest equalization tax” in the United States, it has recently been argued that the international market to handle bond issues should be moved to Europe. The present study argues that only by a reorganization of the markets, a revision of certain directives now being followed in monetary and financial policy, and the introduction of new formulas for bond issues will Europe be able to fulfil the function of an international financial centre. The author first touches on some structural problems of the EEC countries’ capital markets. Subsequently, an examination is made of the conditions necessary for establishing closer link between the European markets. Finally, the techniques recently developed for issuing international loans are examined and the means for furthering the evolution now in progress are indicated.

JEL: F30, F36, G15