Eurozone corporates already finance more on the capital markets and less through bank lending. This evolution is due to the new regulations of European banks, but also corresponds to a theoretical view according to which financing on the capital markets in more efficient. We believe that the switch of Eurozone corporates to financing on the capital markets is a mistake for two reason: the weakness of the demand of risky assets by individual investors; the requirement, with this type of financing, of a larger flexibility of the labor market.
