Let’s start by dismantling the barriers to long-term investment

Jacques DE LAROSIERE Former Managing Director of the IMF, advisor to the President at BNP Paribas and Chairman of Eurofi [vc_btn title= »Download the article » style= »outline » color= »blue » align= »right » i_icon_fontawesome= »fa fa-file-pdf-o » add_icon= »true » link= »url:http%3A%2F%2Fprod.confrontations.org%2Fwp-content%2Fuploads%2F2016%2F03%2FRevue-107-Let%E2%80%99s-start-by-dismantling-the-barriers-to-long-term-investment-p23-24.pdf||target:%20_blank »] According to Jacques de Larosière, former Managing Director of the IMF, advisor to the President at BNP Paribas and Chairman of Eurofi(1), it is urgent that we act now to lift the rules discouraging long-term investment. Here is how. Marie-France Baud: How do you view the changes in financial regulation in Europe and the implications for long-term investment? Jacques de Larosière:  There is no doubt that financial regulation has strengthened the capital base and made the system more secure, but it has also discouraged long-term investment. Under the Solvency II regulation, insurance companies face a capital charge of 39% on their equity investments. The capital ratios imposed on banks are also based on the idea that long-term investment is