The European Commissioner for Financial Services, María Luisa Albuquerque, defended this Monday at the European Forum in Brussels the importance of creating "European champions," much larger companies that are much more productive and competitive.
"You can't innovate with a productive structure made up of companies with 20 employees", she stated during her speech at a meeting organized by the New Economy Forum in the EU capital, where she indicated that it is also key for European companies to be fueled by capital rather than debt.
She also asserted that Europe needs a "more balanced" economy, which requires changing tax systems that favor debt over capital, which is a problem for the EU economy. "Even if we do everything right, moving from a debt-based system to one based on the importance of capital will take time", said Albuquerque, who indicated that it is very important to continue helping banks to maintain a healthy financial system.
For the commissioner, the key is to create a "win-win" effect, so that if the banking system is strengthened, it will invest in capital investment. "This is a chicken-and-egg paradox. I don't know if the shortage of bank investment stems from the absence of capital markets or if the capital markets are the way they are because of a lack of investment banking", she stated.
Finally, when asked about the implementation of a "Regime 28" pension scheme, similar to the one proposed in the Letta Report, to create a pan-European macro-pension fund that invests in Europe, she clarified that it is complex because pension funds are a state responsibility, not a European one.
"Although this fund would help strengthen European capital markets, implementation would require overcoming significant political and social barriers", Albuquerque clarified, noting that the European Union can recommend but not "impose".
