Employees are an often overlooked source of capital, providing both a stable ownership structure and an alternative to outside investors, whether traditional or unconventional – stressed Commissioner Andor while addressing a conference on the impact of financial enterprises on 5 July, 2010.
This stability and long-term view can be of particular interest in the current economic crisis, he noted.
Mr Andor expressed his view that promoting employees as potential investors also helpsto increase accountability among financial investors . At the same time he also warned of risks inherent in such schemes and suggested prudence. Commissioner Andor said: "We cannot avoid all forms of risk, nor should we. Risk is an inherent part of developing new products, new markets or new forms of workplace organisation. It is a necessary part of ensuring our global competitiveness. But it must be well-managed risk."
Mr Andor was speaking at the European Commission's Forum on the Impact of Financial Investors on Enterprises in Brussels.
The Forum brought together some 200 participants, representing trade unions, employers, national and regional public authorities, academic experts as well as European Institutions.
The purpose of the Forum was to discuss the challenges posed by the increasing importance of unconventional financial actors, such as private equity investors, hedge funds and sovereign wealth funds, in industrial restructuring.