Report
Patrick Artus

How to rebalance savings and investment in the euro zone?

Since 2012, the euro zone has had significant excess savings over investment (a large current account surplus). This situation is unfavourable, since it means that a share of the euro zone's savings is lent to the rest of the world instead of being invested in the euro zone. But how can it be corrected? Expansionary monetary policy has proven ineffective; A more expansionary fiscal policy in Germany and the Netherlands? This is happening but will be far from sufficient to absorb the excess savings; A larger euro-zone public investment fund than the Juncker plan; Also with tax incentives to encourage corporate investment, since returns on such investment are high.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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