EUROPEAN LONG-TERM INVESTMENT CONFERENCE : A new beginning for investment
mercredi 03 décembre 2014Sharing a diagnosis
Why isn’t investment picking up? The confidence crisis and
risk aversion run deep in Europe. They are sustained by uncertainty
caused by geopolitical tensions, doubts about the integrity of the
Eurozone and the Union, and market failures. Global demand is flat,
while excessive debt and low competitiveness are a major impediment
in many countries. The general consensus is that public investment
and incentives are needed to restore confidence among private
investors.
Internal market integration and public/private sector
complementarity
How can we make the most of new opportunities to promote
sustainable development? At present, large corporations are
investing elsewhere and SMEs do not have the support they need to
innovate, grow and win new markets. We will invite entrepreneurs to
explain the difficulties they face in obtaining funds and due
valuation of the return on their investments. Skills development
and the implementation of new technologies and infrastructure
across a more integrated and more attractive European market are
essential to building a competitive and inclusive economic
Union.
The transformation of the banking and financial
system
While funds are plentiful, resource allocation channels are
inadequate. The regulatory framework has been reinforced to ensure
greater stability, but we still have to strike a better balance
between prudence and the risk-taking needed to increase investment.
Banks are reducing their balance sheets but new supplies of credit
are essential. The shift to market-based financing has already
begun but it must be properly organised. The role played by
institutional investors and fund managers has to be substantially
increased.
Macroeconomic policy and institutional
reform
The European Central Bank is committed to supporting lending
and business activity but it cannot be
expected to do everything single-handedly. The coordination of
national economic policies must be stepped
up and improved; preparing a fiscal capacity for the Eurozone
should not be further delayed.
The recovery plan consists not only of using available public
funds and leveraging investment, it will also
require institutional reforms: a new role for the EIB,
coordination between national public investment banks
and the Commission, the creation of European investment funds
and so on.
The European Long-Term Investment Conference will open
an economic and political dialogue calling
for civil society involvement and more responsibility
sharing and solidarity between the public and private sectors. It
is being organised in response to a democratic crisis, the aim
being to restore confidence and to move closer towards a common
investment policy.