TLDR:
- Europe needs more and better investment to drive its place in the world.
- Private capital investment is crucial for innovation and competitiveness.
Scalability for Europe’s innovators requires private capital, which is needed quickly due to the demands of climate change and digitalization. Invest Europe emphasizes the importance of driving innovation and unlocking more private capital for a competitive EU, echoing Italian Prime Minister Enrico Letta’s call to action. The European private capital industry has grown significantly over the last five years, with €1 trillion of capital under management, including €348 billion of dry powder. However, the EU faces challenges from climate change and digitalization, highlighting the need for more investment to avoid stagnation.
Invest Europe’s manifesto stresses that investment empowers innovation, tackles climate change, and strengthens European infrastructure. Letta emphasizes the importance of unlocking private capital for funding transitions and bridging the gap between savings and financing transition costs. He also advocates for the completion of the Capital Markets Union to find more funding for European companies.
Private equity and venture capital funds have been crucial in fostering innovation, with investments benefiting the economy and society. The new EU political mandate presents an opportunity for the EU to elevate its ambition and mobilize more private capital to enhance Europe’s competitive edge. Strategic actions considering the entire investment ecosystem, starting with institutional investors, are key to achieving this goal.
