Blueprint for European Capital Markets

Created: 13 October 2014

We fully support the regulators’ objective of increasing the harmonisation of crowdfunding activity and reviewing potential barriers to cross-border transactions, both initiatives which could help to bolster an important source of capital for early-stage companies. Following the funding escalator rationale, companies need access to different types of funding at different stages of their development; e.g. crowdfunding, business angels, venture capital, private placement, IPO on Growth & Main Markets as well as secondary capital raisings.

Europe needs to finance investment, create jobs and wealth, and boost economic growth. As the operators of Europe’s Regulated Markets, FESE members have been working together to create a common vision on how European capital markets can finance Europe’s future growth and development: A Blueprint for European Capital Markets.

The Blueprint analyses and deciphers what action is needed from both industry and policy experts to secure a robust economic landscape for the future.
In the paper we emphasise that a greater focus is required on the end-users of capital markets. That the EU Single Market must be accessible to companies at all levels: national, regional and pan-European and that there should be a greater awareness of the importance of the diversity of ecosystems, and the way they are impacted by the interaction between listing and trading.

A fundamental re-orientation of Europe’s policies is needed towards:

  • Investing in economic growth
  • Serving investors
  • Serving companies
  • Positioning Europe in the world and;
  • Improving safety

By implementing the recommendations identified in this paper, the goal of reducing frictional costs between issuers and investors will make financing cheaper and returns higher. This will ensure that more capital is channeled into SMEs and more companies are publicly listed.

In our view, more enterprise financing through capital markets will help Europe achieve higher levels of innovation, savings mobilisation, wealth distribution, risk management, and job creation.

Finally, to achieve the objectives of the Single Market and “Europe 2020”, the EU’s growth strategy for the current decade, an overarching mindset is important. This is why we propose a high level goal: by 2020, stock market capitalisation should account for 100% of GDP.

Read the full position here :