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European Financial Services Round Table

Tuesday, September 24, 2013
Supporting Long-Term Financing of the European Economy
Although there have recently been a number of positive signs of recovery the European economy has been under substantial pressure over the past few years due to a combined sovereign debt crisis, banking crisis and a growth and competitiveness crisis. This has led to a slowdown in economic growth, increasing unemployment - especially among young people - and fragmentation across Europe. The European Union, European Central Bank, the Member States and the private sector have all taken a number of important steps to address the situation but more needs to be done. The European Commission in its "Green Paper on the long-term financing of the European economy" (March 2013) rightly asserts that the most pressing challenge for Europe is get back on a path of sustainable and inclusive growth, creating jobs and enhancing its competitiveness internationally. Furthermore, the Commission identifies large-scale, long-term investment as a key driver for reviving growth and employment across Europe. The European Financial Services Round Table (EFR) commends the EU commission for initiating a debate about how to foster the supply of Long-Term Financing (LTF) and how to improve and diversify the system of financial intermediation for long-term investment in Europe. The EFR wants to contribute to the debate and has published a document "Supporting Long-Term Financing of the European Economy" that addresses seven important topics: infrastructure investment, financing small and medium sized enterprises (SMEs), fostering a venture capital culture, the importance of securitisation, the key role of the insurance sector, the changing dynamics of the banking sector and financial sector taxation. If addressed properly, these areas can contribute substantially to long-term growth and employment prospects across Europe. The full document is available below.