On Thursday 12 March, 120 leaders from the private equity, venture capital and infrastructure industries called on Europe’s political leaders to accelerate the EU’s financial and regulatory integration ahead of the next European Council.
In a letter to the Heads of State or Government forwarded to Agence Europe, the private investment sector urges the EU27 to take “bold” steps to strengthen Europe’s ability to finance innovation, infrastructure and growing businesses.
In particular, the signatories call for facilitating the raising of capital from European and international investors, by reassessing certain prudential frameworks and ensuring that access to foreign capital is not restricted.
They also call for more effective mobilisation of long-term savings, and for a new leap forward in the integration of the single market for capital, in particular through a new system of company law, known as the harmonised “28th regime” (see EUROPE 13823/14).
“But it will fall short unless it is genuinely attractive - through clear advantages, a regime with no ‘bells and whistles’ allowed in national gold plating and with a plan to follow up in areas such as insolvency, labour, or taxation”, warn the stakeholders.
“Feedback to date is worrying: old habits and national reflexes could well dilute the value of such an important proposal”, they fear.
In the context of the negotiations on the EU’s post-2027 Multiannual Financial Framework (see EUROPE 13826/21), investors are calling on the European institutions to make greater use of the EU budget as a lever for attracting private finance, in particular through guarantees, co-investments and equity instruments, while simplifying the administrative obligations on fund managers.
“Europe should not settle for adapting to a changing world. With the right choices now, it can still shape it. But it is now or never for our continent”, they say.
See the letter: https://aeur.eu/f/l58 (Original version in French by Bernard Denuit)