Economics
Europe’s Firms Face $720 Billion Capital Gap to Fund Rebound
- AFME report calls for solutions to firms’ financing needs
- EU should consider new hybrid instrument, group says
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The European Union needs to find new ways to recapitalize businesses so that the hole on corporate balance sheets doesn’t derail the recovery, according to a financial-industry group.
Companies face an equity shortfall of as much as 600 billion euros ($724 billion), as existing government programs and private funding won’t suffice to fully cover the roughly 1 trillion euros that businesses need to replace losses suffered during coronavirus restrictions, the Association for Financial Markets in Europe said in a report on Tuesday.