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“To improve financing for high-growth potential emerging companies, policymakers should focus on the legal and regulatory environment and on market incentives, rather than on subsidies or other direct intervention”, Thomas Philippon, and Nicolas Véron argue in their latest Policy Brief issued by Bruegel institute. “Key areas for policy action include competition among intermediaries, securities regulation, insolvency legislation, taxes, and prudential rules”, the authors continue.
“More generally, the ability to foster corporate growth should be given higher priority in EU financial policy, alongside existing objectives of financial integration and stability. Even if decisions fall within the national remit, information, benchmarking and discussion at European level would enhance the prospects of reform.”
Arguments about structural policies in
Corporate finance is crucial for the emergence of new companies, well beyond the much-analysed technology sector. In a knowledge economy where companies rely less on physical investment, traditional bank loans are insufficient.
While
Policy Brief