The European Commission released today the Green paper on Capital Markets Union with the main goal of supporting SME´s and start-ups having access to finance.
The creation of a true single market for capital is in line with Juncker political programme presented to the European Parliament in June 2013.
With this proposal, the Commission seeks to improve access to finance for all businesses and infrastructure projects across Europe, help SMEs raise finance as easily as large companies, remove barriers to cross-border investments and diversify the funding of the economy and reduce the cost of raising capital.
According to the Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness said: “Capital Markets Union is the first structural initiative that the Commission puts forward under the investment plan. It will contribute to ensuring that the investment plan is more than a one-off push and has a durable positive impact on economic conditions in Europe.”
SME´s and start-ups around Europe may have the opportunity to diversify their own funding, having more venture capital companies, business angels or crowdfunding available to support their new projects instead of traditional forms of banking finance. According to the EC proposal, funding has to evaluate from traditional lends to private equity.
Read full proposal here.