Three questions on financing the economy in the euro zone

The question of financing the economy in the euro zone is very different from that in the United States, since households in the euro zone want savings that are largely liquid and risk-free. The financing of the economy must therefore be intermediated by banks and insurers. Three questions then arise: Can we expect households to increase their direct holdings of risky financial assets, either through effective incentives or because of the low interest rate environment? Is it possible to have financial intermediaries that, at the same time, take risk, have sufficient profitability to be able to raise capital, and provide intermediation that is not costly? Is it possible to avoid a growing role of the public sector in financing the economy (increased role of public-sector banks, national or European recovery plans; government guarantees)? Is this growing role of the public sector compatible with the financing of innovative companies?