French report pushes for early creation of Capital Markets Union
Francois Villeroy de Gallhau, formerly the deputy CEO of BNP, has submitted a progress report on his investigation into investment to the French government.
The message of the report, delivered to the French prime minister by Francois Villeroy de Gallhau on Thursday August 27th, was that investment finance for innovative businesses was indispensable to generating solid and sustainable growth.
In this first assessment, Villeroy de Galhau focused on what he called a “central challenge”: to reconcile "increasingly innovative (and risky) investments, a high but sensible level of saving and a financial system that has become more secure" since the 2008 financial crisis. He hopes that French banks will take "resolute action to end the persistent misunderstanding" with businesses, by improving their access to cash loans.
The ex-banker also argued that some of the €1,600 billion currently invested in life insurance funds needs to be channelled back into the real economy.
The question of badly placed savings is an important one in the eurozone. The EU's "annual current account surplus of €200 billion" is poorly positioned to act as a buffer against national shocks.
More generally, the former finance minister sees the future Capital Markets Union as a potential answer to this problem. He would like to see it introduced in 2016 or 2017, ahead of the European Commission's target date of 2019, and re-branded as the "Financing and Investment Union".
deVere France offers sound and expert financial advice to UK expatriates in France. Contact us today to find out how we can help you.
Francois Villeroy de Gallhau, formerly the deputy CEO of BNP, has submitted a progress report on his investigation into investment to the French government.
The message of the report, delivered to the French prime minister by Francois Villeroy de Gallhau on Thursday August 27th, was that investment finance for innovative businesses was indispensable to generating solid and sustainable growth.
In this first assessment, Villeroy de Galhau focused on what he called a “central challenge”: to reconcile "increasingly innovative (and risky) investments, a high but sensible level of saving and a financial system that has become more secure" since the 2008 financial crisis. He hopes that French banks will take "resolute action to end the persistent misunderstanding" with businesses, by improving their access to cash loans.
The ex-banker also argued that some of the €1,600 billion currently invested in life insurance funds needs to be channelled back into the real economy.
The question of badly placed savings is an important one in the eurozone. The EU's "annual current account surplus of €200 billion" is poorly positioned to act as a buffer against national shocks.
More generally, the former finance minister sees the future Capital Markets Union as a potential answer to this problem. He would like to see it introduced in 2016 or 2017, ahead of the European Commission's target date of 2019, and re-branded as the "Financing and Investment Union".
deVere France offers sound and expert financial advice to UK expatriates in France. Contact us today to find out how we can help you.