With slight adjustments in Solvency 2 Europe could fill funding gap of €2tn until 2040.
Over the past 18 months, a significant portion of national economies within the European Union have encountered challenges. It is thus more relevant than ever to discuss the future value creation within our economies and how to safeguard the prosperity of our continent.
Undoubtedly, small and medium-sized enterprises serve as the backbone of Europe's prosperity. They contribute to nearly two-thirds of European jobs and play a profound role in driving economic growth and fostering innovation. Similar to the 1950s-1960s when SMEs relied heavily on external financing, mainly from banks, to fuel innovation, present-day SMEs and startups require funding to effectively commercialize and scale their innovation.
Consequently, Europe must seek solutions that encourage a larger influx of domestic institutional capital, such as pension funds and insurance companies, into private markets in order to ensure its future prosperity. The most promising solution could involve adjusting regulatory frameworks to facilitate new asset allocations by pension funds and insurers.
Prior to 1979, the rule mandated pension managers to invest with the prudence of a prudent person. Consequently, many pension funds avoided venture capital investments entirely, as such investments were deemed imprudent. In 1979, the U.S Department of Labor ruled that portfolio diversification should be a factor in assessing the prudence of an individual investment.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jed Arnold wins special election to fill southwest Virginia House seatThe former law partner of a Virginia legislator who recently retired to become a judge handily won a special election Tuesday to fill the vacant southwest Virginia seat in the House of Delegates, according to state results.
Read more »
49ers hire fill-in kicker while clouds hover over Nick Bosa, George KittleJake Moody may be improving but the 49ers are bringing in kicker Matthew Wright, all while contract talks ensue on Nick Bosa and health reports perhaps dim on George Kittle.
Read more »
49ers add fill-in kicker while clouds hover over Nick Bosa, George KittleJake Moody may be improving but the 49ers are bringing in kicker Matthew Wright, all while contract talks ensue on Nick Bosa and health reports perhaps dim on George Kittle.
Read more »
Our guide to Southland fall festivalsSouth suburban fests fill fall with brews, crafts, dogs, heritage, music and much more
Read more »
Roman Polanski’s ‘The Palace’ Sells To Key Europe Territories Ahead Of Venice PremiereEXCLUSIVE: Roman Polanski’s dark comedy The Palace has sold to a host of key territories ahead of its Venice premiere, with distributors getting behind the film in spite of the controversy surround…
Read more »