How to end Europe’s backwater investment status

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Lagarde envisages a new investment structure to guarantee common standards and low costs

As European policymakers fret about the threat to EU competitiveness posed by Donald Trump, there is at least one US phenomenon that Europe would love to import: the country’s ability to fund itself with dynamic equity finance provided by individuals and institutional investors. Europe continues to rely on loans from its hobbled banking system for corporate finance.

For retail investors, Lagarde envisages a new investment structure, which could be EU-kitemarked, to guarantee common standards and low costs. She also recognises that equity investment may need to be tax-incentivised. France’s Livret A scheme is a partial blueprint — it diverts the savings of bank customers into tax-free contributions to state priorities, like funding the defence budget.

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Bron: FT - 🏆 113. / 51 Lees verder »