European Commission launches Green Paper on the long-term financing of the European economy
The European Commission has today adopted a Green Paper that launches a three-month public consultation on 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. The financial crisis has affected the ability of the financial sector in Europe to channel savings to long-term investment. Responses to the consultation will help the Commission determine what can be done to overcome the barriers to long-term financing.
Extracts from the press conference, by Commissioner Barnier:
“It is high time to change economic models, to move away from the culture of short-termism which has shown its limitations. Short-termism has had its day.”.
“It is time to place more emphasis on productive capital”.
“It is time to encourage the real economy rather than the financial sector – that is the true source of growth and jobs. We have to give it the means to develop”.
“A comment on Cyprus: the model based on finance had to be changed, and I personally felt that those who had savings below 100 000 euros had to be protected. If we want citizens to have confidence, and to invest, the spirit of EU law in this area had to be respected. Never, and nowhere in Europe, can protection below the threshold of 100 000 euros be put into question”.
“It is time to launch this debate to channel savings towards long term investment”.