The European Commission has launched a Green Paper which aims to kick-start a broad debate about ways of encouraging long-term financing and more diversity in financial intermediation for long-term investment in Europe. The purpose of the document is to help Europe overcome the aftermath of the financial crisis with a view to encourage its financial sector to channel savings towards long-term investments.

Long-term investment needs in Europe have become a crucial factor in enhancing the productivity and industrial capacity of the economy.

The Green Paper emphasises the need for long-term financing and deals with a wide range of areas such as energy, transport and communication infrastructures, industrial and service facilities, climate change and eco-innovation technologies, as well as education and research and development.

This initiative is expected to contribute towards the creation of a more sustainable economy and towards raising Europe’s long-term productivity, growth and competitiveness as companies and governments will be in a better position to respond to new economic, social and environmental challenges.

The European Commission believes that the capacity of the economy to fund long-term investment needs to be predictable and should depend on the ability of the financial system to effectively and efficiently channel funds and investments to the right users through open and competitive markets.

For this reason, the European Union has been following a comprehensive programme of financial reform.

This compliments a broader fiscal and economic reform and which will effectively enable the financial sector to support the real economy, without endangering financial stability.

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