Interest rates are going to remain very low in the euro zone: How will companies react?

Given the weakening of growth and the decline in inflation and in expected inflation, interest rates are definitely going to remain very low for a long time in the euro zone. One important question is then how euro-zone companies might react to this long period of low interest rates. In principle, we can imagine: An increase in investments; this can be observed; Use of debt leverage either to invest or to buy back shares and increase the return on equity; this cannot be observed; An increase in mergers and acquisitions, especially as companies have considerable cash reserves; this is clear to see. The rise in cash reserves in a low - interest - rate environment is surprising, unless they are reserves for future acquisitions.