perspective from the European Commission Marco Buti Director - - PowerPoint PPT Presentation

Investment and investment finance in Europe: policy perspective from the European Commission

Marco Buti

Director General - DG ECFIN, European Commission

EIB annual Economics Conference November 23rd 2017

Is there still an "investment gap" in the euro area?

Note: Investment as a share of GDP. Data for euro area excluding Malta. Construction includes both residential and non- residential investment. Source: AMECO

Total investment rate Investment: equipment vs. construction

17 18 19 20 21 22 23 24 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

• Inv. Rate

Average 1998-2004 forecast 2 4 6 8 10 12 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Equipment Construction

• Eq. 1998-2004
• Con. 1998-2004

forecast

2

Investment and resilience

Source: European Commission Economic Forecast, Autumn 2017 and OECD. The red dots refer to PMR in 2013 for the selected countries.

3

Lower R&D investment where firms are more bank-dependent

• Note. Horizontal axis: ratio of Loans / debt securities and equity for the corporate non-financial sector. Vertical axis: Expenditure

in R&D of the business sector (%GDP). 2016 data (for FR, UK and PL: 2015). Source: AMECO and Eurostat.

4

Policies at EU and National level

EU-level National level Financing investment in innovation

• CMU
• EFSI / EFSI2
• Address NPL and

banking weaknesses

• Foster alternative

sources of finance

Fostering structural reforms

• SGP investment clause
• Investment protection

scheme

• Progress in

addressing CSRs

Removing regulatory

• bstacles
• Better regulation agenda
• Completing the Single Market
• Administrative

simplification 5