How can European companies be resilient without a decline in their profitability and growth?

Given the growing number of crises in the euro zone (subprime crisis, euro-zone crisis, COVID crisis), euro-zone companies seek to be resilient and able to withstand crises. But the risk is that their search for resilience will lead to a loss of corporate earnings and growth. The reason is that to be resilient, companies may be tempted to accumulate cash reserves instead of investing and hiring, which is a use providing a zero return and with no positive effect on the growth of their resources. We therefore need to look at how companies can be resilient without sacrificing earnings and growth. A possible solution is a sharp increase in corporate financing in the form of subordinated debt (equity loans), making it possible to suspend debt servicing in the event of problems, which is a substitute for cash holdings. For earnings to be unaffected, quasi-equity funding must be allocated to investments whose returns exceed the cost of quasi-equity, or governments must give a partial guarantee on such quasi-equity to reduce its cost .