Over the formation of the union capital markets work the British Conservative EU Commissioner. Financial stability Jonathan Hill. This year is expected to be the first concrete proposals in this case, classified as priorities for the European Commission.
“We need to develop other (non-bank – PAP) sources of funding for the European business. I reduce the cost of capital” – called the Commissioner in one of the first speeches after taking office.
Raised to be struggling with a crisis, the EU, and especially stagnant euro zone needs a new impetus to economic growth. Union Capital Markets to assist in the strengthening.
“All the problems that plagued for months Europe (…) meant that there was a need to look at how you can increase the role of capital markets in financing investment,” – said the PAP was Commissioner EU. Regional Policy Commissioner Danuta Huebner.
Europe is far behind the US in terms of financing the economy through capital markets. Medium-sized companies in the US enjoy the benefits of capital markets, five times more than the same company on the Old Continent. European business caters to 80 percent. their financial needs in banks, and only 20 percent. through debt securities.
This is the main reason why the European Commission wants to unlock opportunities for capital in Europe, which in large part is simply frozen. By fragmentation of European capital markets, shareholders and debt buyers rarely engage companies outside their own country. This in turn – as argued Hill – limits the size of capital markets and makes it difficult for investors diversification.
According to the former Commissioner initiative with a delay. “Free movement of capital is one of the pillars of the internal market. Case union capital markets was not really resolved a long time” – admitted Huebner. In its assessment of this is due to the fact that the EU was busy regulating the banking sector, which to a large degree contributed to the crisis in Europe.
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