| The European Commission has recently launched its landmark project to unlock funding for Europe’s businesses and to boost growth in the EU’s 28 Member States with the creation of a true single market for capital, known as “Capital Markets Union” (CMU). With this initiative, the EC aims to break down the barriers that are blocking cross-border investments in the EU and preventing businesses from getting access to finance. |
The current environment is tough for European businesses that remain heavily reliant on banks and relatively less on capital markets. The opposite is true in other parts of the world, for example in the US venture capital markets satisfy the funding needs of the early stage companies in the area.
Along with the CMU, the Commission launched a three-month consultation round, known as a Green Paper, the outcome of which will shape an Action Plan to help unlock non-bank funding so that start-ups can thrive and larger companies can expand further. The consultation aims at seeking feedback on the possible measures needed to create a true European single market for capital.
Among the measures proposed within the Green Paper, crowdfunding is also a focus. The Commission is trying to understand if appropriately regulated at the EU level, this new source of finance would foster and benefit cross-border investments. Furthermore, the European Commission is considering to make it less burdensome for companies seeking investments by reviewing the Prospectus Directive, which currently requires much effort and resources for compliance. In general, the objective of all the possible measures suggested in the Green Paper is to facilitate access to capital for companies in Europe, attract more investments, while ensuring adequate investor protection.
The Commission is seeking feedback from the European Parliament and the Council, other EU institutions, national parliaments, businesses, the financial sector and all others interested. All stakeholders and interested parties are invited to submit their contributions by 13 May 2015 at this link.
Sources:
European Commission (2015). Unlocking Funding for Europe's Growth - European Commission consults on Capital Markets Union (Press Release).
Image credit to: Sebastien Bertrand http://bit.ly/18gNMLi
Along with the CMU, the Commission launched a three-month consultation round, known as a Green Paper, the outcome of which will shape an Action Plan to help unlock non-bank funding so that start-ups can thrive and larger companies can expand further. The consultation aims at seeking feedback on the possible measures needed to create a true European single market for capital.
Among the measures proposed within the Green Paper, crowdfunding is also a focus. The Commission is trying to understand if appropriately regulated at the EU level, this new source of finance would foster and benefit cross-border investments. Furthermore, the European Commission is considering to make it less burdensome for companies seeking investments by reviewing the Prospectus Directive, which currently requires much effort and resources for compliance. In general, the objective of all the possible measures suggested in the Green Paper is to facilitate access to capital for companies in Europe, attract more investments, while ensuring adequate investor protection.
The Commission is seeking feedback from the European Parliament and the Council, other EU institutions, national parliaments, businesses, the financial sector and all others interested. All stakeholders and interested parties are invited to submit their contributions by 13 May 2015 at this link.
Sources:
European Commission (2015). Unlocking Funding for Europe's Growth - European Commission consults on Capital Markets Union (Press Release).
Image credit to: Sebastien Bertrand http://bit.ly/18gNMLi
| About the author - Irene Tordera Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives. During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem. |
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