Firms’ direct recourse to the capital market accounts for an almost negligible share – around 5 per cent – of total finance to the productive economy. The drawn-out recession has undercut firms’ self-financing, especially for smaller businesses. And the margin for intervention by the public sector is narrow indeed, notwithstanding the recent measures to stimulate a rebalancing of firms’ financial structure.
Now that signs of economic recovery are emerging in the euro area and in Italy, it is essential to learn the lessons of the crisis and to avoid pro-cyclical policies. The transition to the new equilibrium marked by more strongly capitalized banks with greater liquidity must be gradual and perspicacious. The risks of sudden adjustment must be carefully assessed.