Equity capital can, in addition, make a special contribution to the financing of young and innovative firms. Despite all the differences between the German and the French financial systems, markets for venture capital remain underdeveloped in both countries, as they are in other parts of Europe. Which specific measures can enhance the contribution of financial markets to growth, innovation, and stability?
The Capital Markets Union – a project which was launched about two years ago – provides answers to this question. Reforming insolvency legislation and – where relevant – harmonizing rules can contribute to cross-border investments and to dealing with non-performing loans.