The financial systems in the EU have changed over the years, especially after the 2007-2008 financial crisis. A study shows that most companies in the EU rely more on bank credit and private equity than on stock markets for funding. However, the EU has been shifting towards more market-based financing recently. Different countries in the EU have different financial systems, influenced by their competitive advantages and how severely they were affected by the financial crisis. This research helps us understand how financial systems evolve and adapt to economic shocks.