Brussels, 03/02/2014 (Agence Europe) - A Commission communication is expected very soon on the issue of participatory finance. This will be on the basis of the results of the public consultation that began last autumn. It involves using the potential of this emerging finance and maintaining it in good health.
Action plan. On Thursday 30 January, speaking on Twitter, European Commissioner for the Internal Market Michel Barnier expressed his intention to present an action plan on participatory finance “in a few weeks' time”. He added that this alternative funding could “help to kick-start growth on the basis of innovation and the regions by recreating cohesion around different projects”.
Different obstacles. Taking part in a conference on alternative finance in Vienna, organised by the Austrian Economy Minister, the commissioner summed up the obstacles identified in the 900 responses in the public consultation. These included a general lack of awareness about this innovative tool, as well as a lack of trust between project users and developers. The risk of fraud and misleading advertising were also mentioned. Investors may also have to deal with promises of financial returns and the risk that the project is overvalued or that funding has not been sufficiently assessed, for example. Finally, fragmentation of the participatory finance market is still a problem: different forms of participatory finance coexist in Europe (with or without financial returns) and are not subject to the same rules.
European action. The general feeling that emerged from the public consultation suggested that there is, indeed, “added value in European action” in this field, according to the commissioner. He also said that this added value could be provided by launching awareness and education campaigns, creating an environment of trust and promoting the market. The communication, with a series of recommended actions for the European and national authorities, is therefore expected to be put on the table by the commissioner, who is determined to ensure that the participatory finance market in Europe is a healthy one. (MD/transl.fl)