Invest Europe has called for a surge in capital towards the continent’s markets so it can remain competitive with the rest of the world.
In Delivering the European Transition, the trade association argued Europe was in need of a “new era of strategic investment”, adding: “Funding must flow towards innovation, tackling climate change and fortifying infrastructure. By empowering these areas, we can build a Europe that is a leader in sustainability, economic strength and technological independence.”
Delivering the European Transition lays out 12 priorities that Invest Europe maintains are needed for a more-competitive union. They are grouped under four themes: unlocking the capital to fund European change; boosting innovators and creating the environment for them to thrive; putting the continent on the global scale; and investing in the ecosystem of the future.
Four themes
Under the first theme, Invest Europe has called for the continent to: take down barriers that prevent pension funds and insurers from financing the digital and climate transition; redirect EU citizens’ savings to productive asset classes through changes to EU passport and reporting requirements; and attract foreign capital to the union.
The second theme encompasses: developing a programme of EU regulations to promote talent mobility and the digitalisation of Europe; reshaping EU company law to incentivise equity investments; and developing a flexible, opt-in EU insolvency law on top of the existing EU-wide rules.
As a third theme, the trade association wants the continent to: complete the Capital Markets Union; leverage existing funding initiatives and create an ‘EU Champions Fund’; and secure tax policies that are simple to adhere to, promote growth and incentivise cross-border fundraising & investments.
Finally, the fourth theme calls on the continent to: ensure there is a straightforward, seamless, and compatible EU sustainability disclosure framework; attract private capital finance to the EU’s most critical sectors – from digital, climate, transport and energy infrastructure to defence; and improve the cross-border EU investment environment.
Invest Europe CEO Eric de Montgolfier said tackling the “major issues of the day”, such as climate change, social inequality and inadequate infrastructure, would not be solved over the course of a political mandate, adding: “These multifaceted challenges demand sustained, long-term strategies. While it is essential to prioritise short-term victories to demonstrate progress, EU policymakers must remain focused on the horizon. And, more importantly, policymakers must have a clear vision for that horizon.”
