| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2013) 150 final (25.3.13) |
| Publication Date | 25/03/2013 |
| Content Type | Policy-making, Report |
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Europe’s pressing challenge is to put the EU back on the path of smart, sustainable and inclusive growth, creating jobs, building on its areas of competitive advantage and, thereby, enhancing its competitiveness in the global market place. In responding to this task, Europe faces large-scale, long-term investment needs, in line with the priorities of the Europe 2020 strategy, the 2012 industrial policy update, the Innovation Union initiative and the Connecting Europe Facility. Long-term investment is the formation of long-lived capital, covering tangible assets (such as energy, transport and communication infrastructures, industrial and service facilities, housing and climate change and eco-innovation technologies) and intangible assets (such as education and research and development) that boost innovation and competitiveness. Many of these investments have wider public benefits, since they generate greater returns for society as a whole by supporting essential services and improving living standards. Their impact can also begin to be felt in the short term. They enable companies and governments to produce more with fewer resources, responding to new economic, social and environmental challenges, facilitating the transition to a more sustainable economy and raising the productive and industrial capacity of the economy. Trends in climate change and the depletion of natural resources further underline the sustainable growth challenge, as they call for more long-term investment in low-carbon energy, energy and resource efficiency and infrastructure, consistent with the political objective of limiting climate change below two degrees and decoupling economic growth from resource use. To fund these long-term investments, governments and businesses of all sizes need access to predictable, long-term financing. The capacity of the economy to make such long-term financing available depends on the ability of the financial system to channel the savings of governments, corporates and households effectively and efficiently to the right users and uses through open and competitive markets. This can be carried out by various intermediaries (e.g. banks, insurers and pension funds) and by direct access to capital markets. This Green Paper focuses on how this process operates. As a prerequisite to channelling long-term financing at reasonable cost, the economy needs to generate and attract savings. Government policies can support this through sound fiscal policies, efficient tax systems and a business-friendly environment that fosters the attractiveness of the economy for investment, including from abroad. Ensuring effective and efficient intermediation channels for long-term financing is a complex and multi-dimensional task. The purpose of this Green Paper is to initiate a broad debate about how to foster the supply of long-term financing and how to improve and diversify the system of financial intermediation for long-term investment in Europe. As can be seen from the consultation questions, this debate should take into account the specificities of different financial market actors and also address questions related to a diverse set of enabling conditions. Responses to consultation questions will contribute to further assessment by the Commission of the barriers to long-term financing, with a view to identifying possible policy actions to overcome them. Possible follow-up could take several forms: in some areas new or adapted regulation may be needed, while in others the role of the EU level could be in encouraging stronger coordination and the promotion of best practices, or in the form of specific follow-up with individual Member States in the context of the European semester. This Green Paper is accompanied by a Commission Staff Working Paper, setting out the underpinning analysis in more detail. |
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| Source Link | Link to Main Source http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2013:150:FIN |
| Related Links |
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| Subject Categories | Economic and Financial Affairs |
| Countries / Regions | Europe |
