France: Companies' share ownership must be broadened

French companies have run up considerable debt and borrowed heavily during the COVID crisis. This makes an increase in their equity necessary, but this in turn requires a broadening of companies' share ownership. Increased ownership of companies' shares can come from: Banks, but the capital adequacy rules would then have to be adjusted, and this would require a shift to different capitalism; Insurers, but the Solvency II rules would have to be changed; Households directly, but they show a high level of risk aversion; Private equity funds. To obtain broader share ownership, regulations for financial intermediaries must therefore be changed. A tax system that is sufficiently favourable to share ownership must also be maintained.