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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 23 rd 2017 Is there still an "investment


  1. 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 23 rd 2017

  2. Is there still an "investment gap" in the euro area? Total investment rate Investment: equipment vs. construction 24 12 23 forecast 10 22 8 forecast 21 6 20 4 19 2 18 17 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 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 Equipment Construction Eq. 1998-2004 Con. 1998-2004 Note: Investment as a share of GDP. Data for euro area excluding Malta. Construction includes both residential and non- residential investment. Source: AMECO 2

  3. 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

  4. 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

  5. Policies at EU and National level EU-level National level Address NPL and • Financing investment CMU banking weaknesses • in innovation EFSI / EFSI2 Foster alternative • • sources of finance SGP investment clause • Fostering structural Progress in • Investment protection • reforms addressing CSRs scheme Removing regulatory Better regulation agenda Administrative • • obstacles Completing the Single Market simplification • 5

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