While various options for monetary and fiscal stimulus packages are being discussed at European and national level, Accountancy Europe, the CFA Institute, FESE and the European Bank for Reconstruction and Development (EBRD) stressed in a joint statement released on Thursday 2 July that capital markets can play a crucial part in mitigating some of the economic fall-out from the Covid-19 pandemic.
The organisations argue that “The EU Capital Markets Union (CMU) should become the focal point for all efforts into recapitalising the European economy and ensuring EU citizens can participate in the economic returns from the rescue funds provided”.
They believe that the stimulus packages should also include specific bridge financing for viable SMEs/growth companies that were planning IPOs when the Covid crisis hit.
They also state that European institutions will need to “address the elephant in the room - taxation”, particularly the existing debt-equity bias on taxation.
They also believe that a pan-European framework for withholding taxes in order to foster cross-border investment would be welcome, and suggest that a tax alleviation for companies that go public could be considered, as long as it is limited to small issuers and SMEs.
To read the proposals, go to: https://bit.ly/2AlwLUu (Original version in French by Marion Fontana)