Running head: MINOR PROJECT
Fiscal Environment of the European Union
Corporate finance plays an essential role in the economic stability of the European Union.
Therefore, the threats as well as the opportunities the corporate finance faces need to be
determined carefully. Corporate finance faces legal and political environment changes which are
sometimes challenges. Mitigating risks is a core value of corporate finance within the European
Union which is affected by many external forces (Barbara et al., 2017). Some of the known
events that have affected the financial services industry in the EU include terror attacks, flooding
across Europe and economic crisis. The mentioned events affected the corporate finance within
EU considerably. This minor project seeks to investigate the legal and political environmental
factors affecting the corporate finance industry within the European Union.
The Legal-Political Changes
Political changes have been prospected to be important in ensuring stabilized financial
services in the European Union against many risks due to the economic importance of corporate
finance. A major effective way through which political changes have impacted the corporate
finance industry in EU is through the establishment of strict regulations. For instance,
considering the recent financial crisis which was an economic event that affected the entire
European economy, political changes have tried to match European Union legislation. The aim is
to establish a common ground for regulating the financial services industry. An example of this
was the introduction of the Solvency II which was a European Union Directive that...