Long-term finance: the foundation of European competitiveness

Financial players called upon to reinvent themselves after a decisive year for ESG issues

The year 2025 marks a decisive turning point for sustainable finance and ESG issues in Europe. Against a backdrop of major economic tensions (with moderate growth of 1.1% forecast for the eurozone, inflation at 2% and public debt reaching 88% of GDP), but also a political retreat on environmental objectives, all financial players are called upon to reinvent themselves.

To meet this challenge, the main responsible finance networks (FAIR, Forum pour l'Investissement Responsable, France Invest, Institut de la Finance Durable, Sustainable Finance Observatory, Fondation Parc, Impact Business Angels, Paris Impact Investing, Principles for Responsible Investment, France Active, CEC Finance, Mouvement Impact France) and some 50 senior executives from banks, insurance companies, funds and venture capital firms met for the second edition of the Université de la Finance de Demain.

Their aim: to share their analyses and formulate joint recommendations, in order to collectively map out the sector's prospects for the next twenty-five years.

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A report designed to provide concrete solutions

The report's proposals focus on two main areas:

• Mobilizing Europeans' savings: The savings of Europeans today exceed 37,000 billion euros, representing considerable financial potential for the European Union. However, a large proportion of these resources remains invested in low-yield vehicles with little productive impact, while a significant portion is directed towards economies outside Europe, notably the United States. As a result, real returns have deteriorated over the past decade, and our economy's strategic needs, such as energy transition, SME development and infrastructure, are insufficiently financed. We therefore propose to redirect these savings in order to stimulate employment and strengthen forward-looking industries in Europe. ‍
• Securing investment in the transition: Today, all economic players are stressing the urgent need for a stable and predictable framework for investors, a sine qua non for supporting the ecological transition and strengthening European economic competitiveness. It is crucial to secure and consolidate existing financing tools, while filling the gaps in the financing chain for companies bringing ecological and social innovations that are decisive for the future of our economies. These measures will enable projects offering sustainable solutions not only to see the light of day, but also to develop and prosper over the long term. Providing a secure environment, combined with appropriate financial instruments, is therefore a major lever for European finance to be fully mobilized in the service of innovation and sustainability.