Promising businesses in many euro-zone countries can’t access the funding they require to grow and create wealth. Economics professor Enrico Colombatto asserts that big banks, regulators and governments have corralled the vast resources unleashed by the European Central Bank and used them to prop up banks and fund government spending rather than to support the real economy. While banks willingly deal with large cash-rich corporations, small companies with regional and even global potential are left out in the financial cold. getAbstract recommends this sobering assessment of the future of Europe’s small enterprises to bankers, policy makers, and, especially, small-business owners and entrepreneurs.
In this summary, you will learn
- Why EU banks and governments have monopolized much of the European Central Bank’s monetary support;
- Why small companies can’t get bank credit, while big companies don’t need it; and
- Why small firms, particularly those in the EU’s periphery, will have to merge to survive.
About the Author
Enrico Colombatto is an economics professor at the University of Turin and director of the International Centre for Economic Research (ICER) in Turin and Prague.