Long-term financing is central to an economy's ability to invest in major domestic projects, such as infrastructure, which produce returns over the longer term.
Similarly, many export contracts require financing over many years to enable the purchase to take place. Savings need to flow into these kinds of investment.
Policy-makers therefore need to address the effects of the financial and economic crisis, new financial sector regulation, and other factors, which have eroded the single market in financial services and deterred longer-term risk-taking. The Green Paper rightly views this as a complex issue, recognising that there is no “silver bullet”.
“The Commission draws attention to a problem which risks seriously undermining Europe’s ability to exit from the crisis and achieve sustainable growth in the longer term”, commented Guido Ravoet, Chef Executive of the EBF. “We welcome the fact that the Commission is seeking from the private sector ideas and solutions which may feed into future policy to help realise the EU 2020 growth strategy.”
Press release
© EBF
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