Putting europe on a sustainable growth path
This conference assessed the impact of financial crisis on investment in Europe paying particular attention to the role of finance, and most notably foreign capital flows, as well as the implications of macroeconomic policy. The participants addressed issues like the supply of investment in Europe, including deleveraging of the banking sector, the impact of financial market integration and fragmentation and the adequate financial policies and regulations needed to secure the supply of sustainable investment finance. Participants agreed that well-targeted policy action is needed, addressing bottlenecks for growth and clear financing gaps. There was consensus on the need for policy interventions aimed at reopening market opportunities. Structural reforms were also called for to reallocate resources towards more productive uses, not only for crisis-hit countries, but for the best performers as well. Innovative ideas, like the creation of a German sovereign wealth fund, were discussed.