By investing (directly or indirectly) in shares and private sector bonds, the pension fund sector may offer alternative sources of financing for the non-financial corporate sector, and hence may provide a substitute for bank financing, which remains the predominant source of corporate funding in the euro area.
With regard to other economic policies, the Governing Council notes the initiatives taken by the European Council of 27–28 June 2013 in the areas of youth unemployment, investment and financing of small and medium-sized enterprises, as well as the European Council’s endorsement of the country-specific recommendations of the 2013 European semester.