§ Mr. Marlow
To ask the Prime Minister if he will make a statement on the Presidency conclusions as to how the capital markets can be made more efficient in order to encourage a flow of savings into productive job-creating investments.
§ The Prime Minister
Implementation of a number of directives relating to banking and financial services should facilitate the development of efficient capital markets within the Community. Member states also need to ensure that domestic capital markets encourage the flow of savings into productive job-creating investments. My right hon. and learned Friend the Chancellor of the Exchequer, recently announced that the Treasury is currently reviewing this area. The Economic Secretary is examining the role of banks and other financial institutions in channelling finance to industry. The Financial Secretary is examining the impact of tax and other Government policies on savings and the flow of funds through the economy. These reviews will make an important contribution to ensuring that policies in this area enhance our economic performance.