The value of mergers and acquisitions activity in Europe has remained almost unchanged for the past five years and is running at just over half the levels of 1999. The failure by M&A to improve is in contrast with debt capital markets, where volumes have more than doubled since 1999, and equity capital markets, which have recovered strongly this year.

Analysis by Financial News of capital markets data from Thomson Financial, the data provider, for the first nine months of each of the past six years shows that the stalled M&A market is holding back an increase in fees and that debt markets are anchoring investment banks' recovery.