Active long-term investors are needed for well-functioning financial markets. Long-term investors are also essential for economic growth, as they finance infrastructure and are more likely to become engaged as active shareholders. Since long-term investments are likely to provide higher returns for pensions and long-term savings, they should be able to attract capital from pensions and other long-term savings funds, which are ample due to high savings rates in Europe. But long-term investment should also be encouraged via the regulatory framework and through fiscal incentives. Furthermore, the development of innovative financial instruments will be necessary to foster long-term investment. Finally, co-operation among long-term investors should also help to develop a new “investment culture”.