This session will first discuss the current financing structure of non-financial corporates (NFCs) in the EU, how it is evolving with the Covid recovery measures and also the issues that it may raise in terms of growth and resilience.
The panel will also assess the actions that are needed for improving the financing structure of NFCs, the impact that can be expected in this regard from on-going EU capital market policy initiatives such as CMU and the MiFID II review, the implementation of the Next Generation EU (NGEU) recovery package and other domestic actions to improve the financing of NFCs and whether any additional measures are needed.
Points of discussion
- What are the main characteristics of the financing structure of EU NFCs? How is it evolving with the Covid recovery measures? What are the main issues posed by the current funding structure of NFCs (e.g. average high level of debt vs equity) in terms of growth and resilience? Does the small-medium size of EU corporates matter? Is it a problem of undercapitalisation or limited corporate dimension?
- What actions are needed for improving the financing structure of EU NFCs? Are these appropriately taken into account in current domestic and EU policy initiatives (NGEU recovery package, CMU, efforts to digitalise finance…) and do these initiatives sufficiently take into account the diversity of EU markets? What further policy measures may be needed notably for SMEs?