Consultation on Long-Term Finance
On 25 March 2013 the European Commission published a Green paper on the long-term financing of the European economy and announced a three-month public online consultation on this issue. This consultation addresses the causes of short-termism and possible measures that could be taken to encourage more long-term investment in Europe.
In all the Green paper contains 30 questions, including topics such as the definition of long-term finance, the functioning of different types of financial institutions (including development banks and pension funds), and the probable impact of changes in financial regulation. However, the consultation gets closer to worker participation issues in a set of questions on corporate governance and information disclosure by companies. The consultation creates the opportunity to speak out in favor of strengthening worker voice in the company as a means of encouraging long-term sustainable investment by companies. Furthermore, improving non-financial reporting (i.e. reporting on the social and environmental impact of companies) could be an important measure here. For example, better non-financial reporting could help worker representatives on pension funds to better distinguish between companies who are investing for the future and following sustainable practices from those that are not. The consultation runs until 25 June 2013 and can be answered online.