The Commissions White Paper on Financial Services Policy 2005-10 refers to the importance of “risk capital” and “venture capital” markets. How does the Expert Group report feed into this debate?
The Group’s report will serve as an important building block in the Commission’s understanding of the challenges this industry faces in respect of legal, administrative and fiscal obstacles to the development of a European private equity market – effecting all the sub-sets of private equity financing stages (from venture capital for start-up businesses and early stage companies, to later stage expansion capital; and management buy-outs and management buy-ins). The report will help us when developing policies that have direct impacts on this industry, or indirect consequences. In addition, DG Enterprise and Industry has recently published a Communication on “Financing Growth”. This report highlights some of the most significant barriers to entrepreneurs and SMEs in gaining access to appropriate sources of (equity and non-equity) financing in Europe. The Expert Group report will provide a source of further reflection to fuel this important debate.
