Brussels, 07/01/2008 (Agence Europe) - On Monday 7 January 2008, the European Commission adopted a communication incorporating a package of measures to promote the integration of the national venture capital markets. These measures include the mutual recognition of funds in a given area of activity. Member states may facilitate operations on their territory for funds raised elsewhere in the European Union, on the condition that the levels of control and transparency in force in the countries concerned are mutually acceptable. In an effort to reduce barriers to raising cross-border venture capital, the Commission is also proposing the extension of the “prudent person rule” to institutional investors who are still not covered.
Venture capital involves a stake being made by an external investor in the capital of a company that is growing or expanding. A recent industry study by the European Venture Capital Association (EVCA) reported that companies in the EU receiving private equity and venture capital created one million new jobs between 2000-2004. In December 2007, the Ecofin Council adopted conclusions on the venture capital markets, which recognised the fragmented nature of these markets, as well as the weaknesses of European companies in the sector (EUROPE 9557). The communication can be consulted at: http: //ec.europa.eu/enterprise/entrepreneurship/financing/publications.htm. (M.B.)