The European insurance and reinsurance federation Insurance Europe is among ten associations calling for the continents’ financial markets to be kept open during the ongoing Coronavirus pandemic.
The group has written to several European and national policymakers and stressed the role financial markets play in providing critical infrastructure for the Europe’s economy
“They serve the needs of participants to raise capital, manage investments, access cash and manage risk in ways that affect both retail and institutional investors,” reads a statement released by the group.
The joint statement notes how these markets are prepared to withstand the extraordinary volatility and stress under which they are now operating.
“However, closing the markets would have a negative impact on the European economy. In fact, even persistent rumours about closing the markets are themselves already causing adverse effects. This is because some market participants are taking steps, which they otherwise would not, to act ahead of a rumoured market closure.”
The signatories have called on policymakers to make a joint statement to signal that European financial markets will continue to operate.
They say this is essential to building market confidence and emphasising that markets are needed most during times of economic uncertainty.