“Europe has to create a well-functioning Savings and Investment Union to mobilise private investments. However, it will depend on the willingness of Member States to go the extra mile for necessary harmonisation steps in taxation, company law, insolvency procedures and supervision”, stated SMEunited President Petri Salminen in a first reaction on today’s publication of a ‘Savings and Investment Union’.
European policy makers have to be aware that private investments in the European Union will only happen, if it is attractive for investors. The inefficient functioning of the single market, burdensome reporting requirements and permitting procedures reduce the profitability of investments and hold them back.
In addition, after ten years of work on a Capital Market Union where Member States have blocked the necessary steps for success, SMEs have doubts whether the sense of urgency finally exists.
Therefore, SMEunited calls on Member States to take up the recommendations made by the European Commission to mobilise more savings for investments, to agree on the necessary harmonisation steps to create a Savings and Investment Union and to review the current banking, investment and pension regulations allowing institutional investors to take more equity on their balance sheets.
