HOW TO INTEGRATE NATIONAL, SECTORIAL & EUROPEAN INVESTMENT STRATEGIES?
18/12/2015Obviously that is our question now! It is not too
late but we need to explicitly address it.
In my sense it is the major objective of the CMU process: identifying all the major questions (a good formalized question is a way for a good answer) and ask the industry, not the Commission, to build up progressively answers, visions, solutions ( legislative or business driven/ processes/ instruments, from the private sector collective initiatives….with the proper public incentives…).
I come back to the title of our conference which mention “strategies”. Yes, at this stage we do not have to be afraid of words. Each institution devote time & money to formalize its strategy, why not Europe? Another misunderstood concept is “industrial policy”! Yes the financial industry in its specific role of channeling / intermediating savings towards the best targets (enterprises) that will create value and growth for the collectivity, need an industrial policy analyzing competitive issues (critical mass – degree of industrialization/ compatibility/ interoperability), models ( growth & stability; credit & capital market, debts vs equities, long term investment & funds…) and building consensus for actions.
In that matter it is clear that the key words should be “convergence” & coherence to create intercategorial synergies, it is not one country or one segment (SMEs vs large cap) against the other, it is all together as for example, if we want to facilitate SME financing we need to leverage the critical mass (including knowledge / practices) offered by upper segments….
Europe should create a competitive advantage from its potential motto : “a convergent diversity”! Our common driver, to trigger our necessary growth is our collective risk appetite, meaning entrepreneurial culture. To finance that dynamic it is necessary to propagate that culture to the investors’ circle which is today risk adverse! That is the fundamental role of the financial intermediation including the fund management industry in the context of the long term investment strategy. That is why in France we promote a slightly different approach: a “financing & investment union”, the CMU being just a (important) tool among others to achieve this objective.
Today we are confronted to a major gap: this common sense long term vision and a regulatory framework that promote short term strategies. That is why the ”Long term investment intergroup” and also the Juncker plan initiative are essential to progressively but also urgently feel this gap.
That is why also financial centers should play collectively a major role: they represent the general interest of all the stakeholders (users & providers) of the financial industry, they “incarnate locally” this “infrastructural” capacity to channel savings & to structure risks to match entrepreneurial- investors schemes. As diversity, in Europe, is a given, they are also a condition to implement this needed “prox-union”: an union for critical mass & proximity services for principle of reality, in other words mass customization at the European dimension. This articulated network of financial centers on the ground is a unique tool to leverage our European sovereignty and competitiveness in financing our economy. Let’s contribute to make it real & efficient. In my opinion it is the purpose of this conference.
In my sense it is the major objective of the CMU process: identifying all the major questions (a good formalized question is a way for a good answer) and ask the industry, not the Commission, to build up progressively answers, visions, solutions ( legislative or business driven/ processes/ instruments, from the private sector collective initiatives….with the proper public incentives…).
I come back to the title of our conference which mention “strategies”. Yes, at this stage we do not have to be afraid of words. Each institution devote time & money to formalize its strategy, why not Europe? Another misunderstood concept is “industrial policy”! Yes the financial industry in its specific role of channeling / intermediating savings towards the best targets (enterprises) that will create value and growth for the collectivity, need an industrial policy analyzing competitive issues (critical mass – degree of industrialization/ compatibility/ interoperability), models ( growth & stability; credit & capital market, debts vs equities, long term investment & funds…) and building consensus for actions.
In that matter it is clear that the key words should be “convergence” & coherence to create intercategorial synergies, it is not one country or one segment (SMEs vs large cap) against the other, it is all together as for example, if we want to facilitate SME financing we need to leverage the critical mass (including knowledge / practices) offered by upper segments….
Europe should create a competitive advantage from its potential motto : “a convergent diversity”! Our common driver, to trigger our necessary growth is our collective risk appetite, meaning entrepreneurial culture. To finance that dynamic it is necessary to propagate that culture to the investors’ circle which is today risk adverse! That is the fundamental role of the financial intermediation including the fund management industry in the context of the long term investment strategy. That is why in France we promote a slightly different approach: a “financing & investment union”, the CMU being just a (important) tool among others to achieve this objective.
Today we are confronted to a major gap: this common sense long term vision and a regulatory framework that promote short term strategies. That is why the ”Long term investment intergroup” and also the Juncker plan initiative are essential to progressively but also urgently feel this gap.
That is why also financial centers should play collectively a major role: they represent the general interest of all the stakeholders (users & providers) of the financial industry, they “incarnate locally” this “infrastructural” capacity to channel savings & to structure risks to match entrepreneurial- investors schemes. As diversity, in Europe, is a given, they are also a condition to implement this needed “prox-union”: an union for critical mass & proximity services for principle of reality, in other words mass customization at the European dimension. This articulated network of financial centers on the ground is a unique tool to leverage our European sovereignty and competitiveness in financing our economy. Let’s contribute to make it real & efficient. In my opinion it is the purpose of this conference.
EF de Lencquesaing DG EIFR