The world’s largest state investment fund called on the urgent reform of European capital markets, including harmonization of tax, bankruptcy and regulatory rules, to prevent further lagging of the continent for the United States and Asia on competitiveness.
Norwegian oil fund, worth $ 1.9 trillion, is the largest individual property owner in Europe, with an average share of 2.5 percent in every company on the continent listed on the stock exchange.
However, the share of European shares in the overall portfolio of the Fund fell with 26 percent of only 15 percent during the last decade, mainly due to the declining competitiveness in relation to American and some Asian markets.
“The functional market in Europe is extremely important for us … It seems that there is now a feeling of urgency now. And we are happy for that,” the Financial Times Malin Norberg, the Head of the Market Strategy in the Fund.
The Fund will send the answer to the public consultation of the European Commission on the integration of the capital market, stating that the approach must be more ambitious and focused on solving deeper structural problems that negatively affect European markets and their dismissance.
“We share the concern that European markets have lost step when it comes to business dynamics and provide new investment opportunities for institutional investors,” said in a letter.
“Key obstacles are national laws on securities, corporate laws and bankruptcy regimes differ significantly between Member States.”
The Fund, which has large investments in companies such as SAP, ASML, Novo Nordisk, Nestlé and UBS, emphasized in which he expects concrete action, is transferred by investor me.
Among them are the reduction of differences in national laws on securities and economies, the harmonization of tax regimes – especially in the deduction tax – as well as simplifying the debt issuance process.
Also, the liquidity of European shares must be improved through competition and innovation, and not excessive regulation, while supervision should be centrated at the level of the entire EU.
Norwegian politicians are 2012. reduced the relative exposure to the Fund Europe and increased its allocation to the American market, but it remains, as they state – “excessively exposed to the European continent.
