Today, Bruegel published this new Policy Brief, which I co-authored with Thomas Philippon of NYU Stern School of Business. We argue that Europe's financial system, which now serves the needs of large established companies very well, could do a better job at providing adequate financing solutions for newer, emerging companies, especially those with a fast growth potential.
In the last section on policy recommendations, we outline the possible content of a public policy action plan. In our view, orienting Europe's financial system towards emerging-company growth could be a policy objective of the same level of priority as existing EU objectives of financial integration and financial stability.
Download BruegelPolicyBrief_310108.pdf if the above link is not functioning.