The Vice President of the European Commission has said Ireland would benefit from a capital markets union given the country's dominant position in asset management.

Ireland fund managers had more than €4.2 trillion assets under management as of September last year. Valdis Dombrovskis said, " A true Capital Markets Union would enable Irish fund managers to further benefit from the full scale of the single market." 

The aim of the Capital Markets Union is to create deeper and more integrated capital markets across the EU by reducing fragmentation in financial markets, diversifying financing sources, strengthening cross border capital flows and improving access to finance for businesses.

The Capital Markets Union, after the Banking union, is a priority of the European Commission to ensure Europe's economy is resilient and well-functioning. 

"Deeper capital markets across Europe will increase risk-sharing among private investors and improve the shock-absorption capacity of the economy," Mr Dombrovskis said. "In the past three years, we have taken fundamental steps towards deeper and more integrated EU capital markets."

He was speaking at the European Financial Forum in Dublin this evening.

Another focus of the Capital Markets Union is to make sure that Europe seizes the opportunities of financial technology. As the largest user of information and communications technology, the financial sector stands to benefit enormously from the adoption of new technologies.

Mr Dombrovskis said Europe has what it takes to develop a globally competitive Fintech sector. He said the Commission sees great Fintech potential in Ireland, "with its strong information technology culture".