Europe needs reforms fostering entrepreneurship

French Central Bank Governor, François Villeroy de Galhau told Maltese MEP Alfred Sant that Europe needs reforms fostering entrepreneurship and emphasised that trust is essential in the creation of new investments in Europe. Monsieur Galhau, addressing the Economic and Monetary Committee of the European Parliament (ECON), said Europe needs much more trust, otherwise it is perceived as a “transfer Union”, which goes only one way. “We have the next generation creating start-ups but we need reforms fostering entrepreneurship in Europe. If this is your point, I agree with you.” Galhau told the Maltese MEP who asked him to elaborate on the reasons leading to the lack of investments in Europe.

The Maltese MEP referred to the French Governor’s idea of a finance minister for the eurozone. “Don’t you think that unless he/she has federal powers, such an appointee will not have sufficient clout to really coordinate relevant policies among member states and the government? Would not his/her success depend on the availability of federal revenues secured through EU wide taxes? Would this be a step too far for member states to accept taking a long time to be implemented? Is it counterproductive to propose a long term solution giving the impression that effective solutions are not available in short to medium term increasing the expectations that disappointing performances are bound to persist within the eurozone? It’s all a question of expectations as well. If one pushes forward an aim, that cannot be reached within the next electorate mandate, that will increase the perceptions in markets and among individuals that things are really getting worst rather than better.”

“Do you think we have the right, necessary and sufficient tools to foster investment through the European Fund for Strategic Investments (EFSI) and other structural funds? Or do we lack something that goes closer to the bone, namely from saving extras to investment? Don’t we need something that is much more vital in order to be able to reach our aims?” the Maltese MEP asked Monsieur Galhau.

Monsieur Galhau replied that the first important and urgent step is that the European Finance Minister should come, with a coordination part and then a budget part. Our issue at present is this investment turf. This is the core of the European disease. Not only Europe, it is also present in the US, with stagnation. But it is especially European: this is why we should organised together the Juncker Plan and the Capital Markets Union (CMU). “When you say “closer to the bone”, if you mean national reforms, strong reforms to stimulate the desire of investors, then yes. Equity financing for firms is very important. We need more business-friendly policies in order to increase our entrepreneurship. This is one of our weaknesses.” Galhau told the Maltese MEP.

You may view the intervention of Dr Sant and Monsieur Galhau in this link:

Maltese Version – L-EWROPA BŻONN RIFORMI LI JINKORAĠĠIXXU L-INVESTIMENTI

Il-Gvernatur tal-Bank Ċentrali Franċiż François Villeroy de Galhau qal li l-Ewropa għandha bżonn riformi li jinkoraġġixxu l-investmenti u saħaq li l-fiduċja hija essenzjali fil-ħolqien ta’ investimenti ġodda fl-Ewropa. Monsieur Galhau qal dan waqt li wieġeb intervent ta’ Alfred Sant fil-Kumitat tal-Affarijiet Monetarji u Ekonomiċi tal-Parlament Ewropew (ECON) li staqsih jiċċara aħjar ir-raġunijiet li qed iwasslu għan-nixfa kbira ta’ investimenti fl-Ewropa.

Dr Sant talab lill-Gvernatur Franċiż biex jelabora dwar il-proposta ta’ ministru tal-finanzi għaż-żona ewro. “Ma taħsibx li jekk il-persuna f’din il-kariġa ma jkollhiex poteri federali, ma jkollhiex biżżejjed influwenza biex tikkoordina politika rilevanti fost l-istati membri? Is-suċċess ta’ din il-kariga ma taħsibx li tiddependi fuq l-aċċessi ta’ fondi minn dħul federali miġbura minn fuq it-taxxi tal-istati membri kollha? Dan ma jkunx pass iebes wisq għall-istati membri biex jaċċettawh u allura jdum biex jiġi implimentat? Mhux kontroproduttiv li tkun proposta soluzzjoni fit-tul li tagħti l-impressjoni li soluzzjonijiet effettivi fi żmien qasir ma jeżistux? Jekk wieħed iressaq għan li ma jistax jintlaħaq sal-mandat elettorali li jmiss, is-swieq u l-individwi jissoponu li l-affarijiet verament sejrin għall-agħar u mhux għall-aħjar. Taħseb li għandna l-għodod meħtieġa u ġusti li jippromwovu l-investiment bis-saħħa tal-Fond Ewropew tal-Investiment u minn fondi strutturali oħra?” staqsa l-Ewroparlamentari Malti.

Monsieur Galhau qal li l-ewwel pass urġenti u importanti huwa l-ħolqien ta’ Ministru tal-Finanzi Ewropew bi rwol ta’ koordinatur u rwol fil-baġit. Il-kwistjoni preżentement hija l-investiment. Din hija l-qalba tal-marda Ewropea. Mhux tal-Ewropa biss, hija preżenti fl-Istati Uniti bl-istaġnar. Imma tinħass l-aktar fl-Ewropa: irridu norganizzaw flimkien il-Pjan ta’ Investiment ta’ Juncker u tal-Capital Markets Union (CMU). “Jekk qed tirreferi għal riformi nazzjonali biex jistimolaw ix-xewqat tal-investituri, allura iva. Għandna bżonn politika aktar ‘business-friendly’ biex inżidu l-imprenditorija. Din hija waħda min-nuqqasijiet tagħna.”qal il-Gvernatur tal-Bank Ċentrali Franċiż.

Segwi l-intervent ta’ Dr Sant u Monsieur Galhau fuq din il-link: