Financial stability and economic growth in the new European regulatory framework: an analysis of European long-term investment funds

The aftermath of the recent financial crisis has introduced several reg- ulative challenges within the European Union (EU). One of these relates to the rules applicable to banking and financial markets, including the renewal of Euro- pean banking supervisory and resolution systems, which in turn has meant a new approach to the relationship between the financial sector and the real economy. The aim of the paper is to provide the reader with a precise review of the most important regulatory reforms in the EU that could address the need for financing sources available to industrial markets. At the same time, the analysis takes into account the most problematic issues currently concerning the European banking system, and the significant ineffectiveness of the ECB’s monetary policies. Specific attention is paid to European long-term investment funds and the new regulations applicable to them. The analysis provides evaluations of future development opportunities among European mid-tier enterprises. The paper con- cludes by highlighting some general concerns that may influence market stability, as well as the need for speedier economic growth.