Past Event

Potential impediments to long-term investment

How can we encourage long-term investment in Europe? Many factors hinder long-term investment but are there risks involved in reviewing existing regulation?

Date: October 4, 2016, 12:30 pm European Macroeconomics & Governance Tags & Topics

 

Event summary

See below for video recording and presentations

The event aimed at identify the possible economic structural impediments to long-term investments and the consequent corrective actions.

Investments have been particular low since the beginning of the recent crisis in 2007, this mainly due to a low demand.

Sandra Rigot from Paris 13 University presented some interesting results from a survey developed to study the impact of accounting and prudential standards on long-term capital investments of financial intermediaries (banks and insurances).

The current accounting standards (IAS39 and IFRS4) and prudential requirements (solvency, liquidity and leverage ratios) have introduced a short-term thinking into long-term management strategies, representing therefore an obstacle to long-term investments.
The plausible improvement will be to introduce a greater balance for future standards in order to measure the long-term assets in a more consistent manner and avoid to excessively penalize them.

Sophie Barbier from Caisse des Dépôts et Consignations stressed the importance of not imposing a banking or insurance regulation to long-term investors and she presented the internal model the company has adopted to promote the funding of long-term investments.
This model is based on very stringent and high standards requirements to preserve the public confidence, a measure of risk consistent with a long-term horizon, a buy and hold investment strategy and a careful design to encompass all the possible kinds of risks existing in the balance sheet.

Furthermore, she highlighted the importance of a close collaboration between the European institutions and the long-term investment institutions, to find the right strategies to return to a stable growth path.

Edoardo Reviglio from Cassa Depositi e Prestiti also underlined the importance of the role of long-term institutions to cover the gap between the demand for long-term investments (e.g. due to an important growth of the population) and the supply of these resources, stressing the importance of the role of an appropriate non-financial regulatory framework (e.g. fiscal incentives) and financial regulations (e.g. Solvency II, liquid instruments as project bonds, securitization of loans for SMEs).

The last panelist was Miguel Gil Tertre from the European Commission, which underlined as the uncertainty can be identified as one of the main obstacle to long term investments, together with regulatory barriers (e.g. Gotthard Base tunnel has been a very long project also due to the much different regulatory environments between Italy and Switzerland).

To overcome these obstacles, he highlighted the importance of country specific recommendations given at EU level, together with broader EU interventions (e.g. reduction of capital requirements for insurance companies that want to invest in long-term projects; simplified rules to use the EU funds for investments), more incentives for sustainable finance and a general more comprehensive approach at European, sectoral, national and regional level.

Event notes by Fabio Matera, Research Intern

VIDEO RECORDING

Event materials

Sophie Barbier – presentation

Miguel Gil-Tertre – presentation

Sandra Rigot – presentation

Schedule

Oct 04, 2016

12.30-13.00

Check-in and lunch

13.00-13.45

Panel discussion

Chair: Grégory Claeys, Research Fellow

Sophie Barbier, Caisse des Dépôts et Consignations

Miguel Gil Tertre, Member, Cabinet of Vice-President Katainen, European Commission

Edoardo Reviglio, Chief Economist, Cassa Depositi e Prestiti SpA

Sandra Rigot, Professor, Paris 13 University

13.45-14.30

Audience Q&A

14.30

End

Speakers

sophie-barbier-photo

Sophie Barbier

Caisse des Dépôts et Consignations

Grégory Claeys

Grégory Claeys

Research Fellow

gil-tertre-picture

Miguel Gil Tertre

Member, Cabinet of Vice-President Katainen, European Commission

Reviglio IMG

Edoardo Reviglio

Chief Economist, Cassa Depositi e Prestiti SpA

rigot-picture

Sandra Rigot

Professor, Paris 13 University

Location & Contact

Bruegel, Rue de la Charité 33, 1210 Brussels

Matilda Sevón

Matilda Sevon

matilda.sevon@bruegel.org

Read about event More on this topic

Past Event

Past Event

Artificial intelligence: challenges and opportunities

Rob Atkinson, the founder and president of the Information Technology and Innovation Foundation presented his research work on the impact of artificial intelligence on our lives.

Speakers: Robert Atkinson, Anna Byhovskaya, Merja Kyllönen and Georgios Petropoulos Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 23, 2017
Read about event More on this topic

Past Event

Past Event

Conversations on the future of Europe

On the occasion of the 60th anniversary of the signing of the Treaty of Rome, we held an event of four conversations between Bruegel scholars and European thinkers.

Speakers: Maria Demertzis, Ivan Krastev, Emmanuel Mourlon-Druol, Johanna Nyman, André Sapir, Catherine Schenk, Andre Wilkens and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 22, 2017
Read about event

Upcoming Event

Apr
5
09:30

Micro- and macro-based methods in assessing the impact of investment

This workshop will discuss methods for accurately evaluating the performance of public and private investment initiatives.

Speakers: Sabine Bernabe, Francesco Di Comite, Grégory Claeys, Zsolt Darvas, Helmut Kraemer- Eis, Aron Gereben, Simon Mizrahi, Amine Ouazad, Debora Revoltella, John K. Swales, Simone Signore, Natacha Valla, Georg Weiers, Marcin Wolski and Guntram B. Wolff Topic: European Macroeconomics & Governance, Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read about event More on this topic

Past Event

Past Event

Intellectual Property and Competition Policy in Europe and Japan

Intellectual property (IP) is a cornerstone for incentivising innovation initiatives. It defines a framework within which firms and individuals can produce creations of intellect.

Speakers: Peter Alexiadis, Reiko Aoki, Michael Koenig, Kai-Uwe Kühn and Georgios Petropoulos Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 14, 2017
Read about event More on this topic

Past Event

Past Event

Different perspectives on Nord Stream II

At this event, we bruoght together key-experts that studied the regulatory and economic aspects of Nord Stream II

Speakers: Severin Fischer, Siobhan Hall, Alan Riley, Szymon Polak, Sebastian Sass, Simon Schulte, Borbála Takácsné Tóth and Georg Zachmann Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 21, 2017
Read about event More on this topic

Past Event

Past Event

Financing the Belt and Road Initiative

The Belt and Road initiative, recently embarked on by China, aims to improve cross-border infrastructure in order to reduce transportation costs across a massive geographical area between China and Europe.

Speakers: Alicia García-Herrero, SUN Mingxi, Jianwei Xu, Alessandro Carano and Sue Anne Tay Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 9, 2017
Read about event

Past Event

Past Event

Brexit and trade: what EU and WTO rules imply

Bruegel in collaboration with Leuven Centre For Global Governance Studies organizes an event at which we will discuss the options for redesigning trade relations in the post-Brexit era.

Speakers: Viktoria Dendrinou, Hosuk Lee-Makiyama, Petros C. Mavroidis, André Sapir and Prof. Jan Wouters Topic: European Macroeconomics & Governance, Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 6, 2017
Read article Download PDF More on this topic

Policy Contribution

Capture

Making the best of the European single market

Now more than ever, the EU needs to address concerns about the significant decline in productivity growth and the increasing perception of unfairness. Completing the single market would unlock the EU's growth potential. At the same time, the EU should empower member states to fight inequality by helping them better distribute the gains arising from economic integration.

By: Vincent Aussilloux, Agnès Bénassy-Quéré, Clemens Fuest and Guntram B. Wolff Topic: European Macroeconomics & Governance Date: February 2, 2017
Read about event More on this topic

Past Event

Past Event

State Aid and Tax Rulings

When do national tax rulings violate EU state aid rules? Does the European Commission's approach raise concerns about Member State Sovereignity and what is the impact on corporate investments in Europe?

Speakers: Clemens Fuest, Damien Neven, Gert-Jan Koopman, Nicole Robins and Guntram B. Wolff Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 1, 2017
Read about event More on this topic

Past Event

Past Event

Europe’s growth champion: will Poland’s success continue?

An event at which Marcin Piatkowski will present the key messages from a book on Poland that he is writing for Oxford University Press.

Speakers: Dan Bucşa, Maria Demertzis, Alexander Lehmann, Marcin Piatkowski and Paweł Samecki Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: January 31, 2017
Read about event More on this topic

Past Event

Past Event

Achieving inclusive growth: what have we learnt?

Inclusive growth has been the exception globally, and will be a greater challenge in the future. Achieving it has to be central to our agenda, but requires rethinking and reprioritisation.

Speakers: Tharman Shanmugaratnam and Guntram B. Wolff Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: January 26, 2017
Read about event More on this topic

Past Event

Past Event

Why are think tanks more important now than ever before?

Video And audio recording A number of campaigns fought in 2016 would appear to have been won or lost on evidence and analysis that did not stand up to scrutiny. Indeed, the very nature of ‘factual’ information was undermined with large parts of the public unwilling to accept conventional positions on matters of global import. […]

Speakers: Matt Dann, Sophie Gaston, Dr. Corinna Hörst, Dr. Olena Prystayko and Paweł Świeboda Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: January 26, 2017
Load more posts