Capital markets represent a financial market that includes the trade of securities whose holders can be companies or the state itself, that is, it enables the purchase and sale of shares or longterm debt. As a rule, capital is directed to productive securities that bring long-term benefits. In the modern world, capital markets, due to their practicality, occupy a very important place in the financing of states and large companies. The focus of this paper is on the analysis of the capital market of the European Union in crisis conditions and how the response or lack of response of the bearer of monetary and fiscal policies affects the recovery from the crisis itself. The European capital markets themselves had positive growth until the beginning of the financial crisis in 2008. The crisis was not caused in Europe, but was transmitted from the US where the sub-prime mortgage bubble burst. The aforementioned crisis became a recession based on securitized loans that were sold as financial derivatives, so the decline of the real estate sector also led to the decline of the financial sector of the economy. With the decline of the financial sector, the real sector lost its source of financing, which resulted in a decline in production. After the crash, European markets took years to recover to the level they were at the end of 2007. The next crisis that affected the capital markets, but also the world economy, had its source in the health sector, because in February and March 2020, the spread of the COVID-19 virus took place. The recovery of financial markets from the COVID crisis was shorter, due to timely monetary and fiscal measures. With regard to the financial crisis of 2008 and 2021, the contribution of this work is an analysis of the causes that led to the crises in the EU, as well as to investigate the connection of fiscal and monetary measures with the recovery time of the capital market and the reasons for the differences in the decline in trading volumes and capitalization in different national markets European Union.