6. Believes that the lack of investment is caused by low confidence, subdued expectations of demand, high indebtedness, risk-aversion of the private sector, absence of measures to encourage productive public investments, fragmentation of the financial markets, slow deleveraging, subdued expectations of demand aggravated by austerity measures seeking to correct overspending, lack of appropriate financing capacity and the fact that in many cases the Member States and the EU fail to take proper action to cope with these factors; underli ...[+++]nes that the investment gap can be bridged by targeted public investments and significantly higher levels of investments in private companies and in European businesses; calls for reforms facilitating a new entrepreneurial climate stimulating new business, new investments and innovations, with the possible returns on investments as a crucial factor for attracting financial capital to the European economy; stresses that increased financing of investments calls for a well-functioning financial system where increased stability and existing cross-border institutions can facilitate liquidity and market making, especially for small and medium-sized enterprises;

The financial crisis shows how very important it is to have stable public institutions responsible for granting credit in crucial investment areas when the private financial market is fluctuating.

internal imbalances, including those that can arise from public and private indebtedness; financial and asset market developments, including housing; the evolution of private sector credit flow; and the evolution of unemployment.

38. Points out that effective financial markets are fundamental to the proper functioning of a single market; believes that ensuring the development of high-quality financial products on a cross-border basis will contribute to an innovative business environment in Europe; believes that rapid innovation and growth in international financial transactions are creating new challenges for the business sector and for the international finance system; calls on the Commission to improve transparency and define more effective regulatory policies to promote financial stability, appropriate consumer protection and market integrity; urges the Co ...[+++]uncil and the Commission to examine the need for more effective supervisory rules for private equity and hedge funds;

27. Points out that effective financial markets are fundamental to the proper functioning of a single market; believes that ensuring the development of high-quality financial products on a cross-border basis will contribute to an innovative business environment in Europe; believes that rapid innovation and growth in international financial transactions are creating new challenges for the business sector and for the international finance system; calls on the Commission to improve transparency and define more effective regulatory policies to promote financial stability, appropriate consumer protection and market integrity; urges the Co ...[+++]uncil and Commission to examine the need for more effective supervisory rules for private equity and hedge funds;

(25) Modern communication methods make it possible for financial market professionals and private investors to have more equal access to financial information, but also increase the risk of the spread of false or misleading information.