The European Commission has proposed amendments to the European Venture Capital Funds (EuVECA) and the European Social Entrepreneurship Funds (EuSEF) regulations, to boost investment into venture capital and social projects; making it easier for investors to invest.
As part of the proposal, the Commission is planning to expand the range of companies that can be invested in by opening up the EuVECA and EuSEF fund labels to fund managers of all sizes. The Commission also aims to simplify cross border marketing of both funds by making it cheaper and easier by prohibiting fees levied by Member States and simplifying the registration process.
This proposal forms part of the Capital Markets Union (CMU) Action Plan, which aims to increase and diversify funding sources for Europe’s businesses and long-term projects by unlocking market-based investments.
Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness said: “Today we are removing another barrier to investment at EU level which is a key objective of the Investment Plan for Europe. The three main changes we are proposing to the EuVECA and EuSEF regulations today – broadening the scope of eligible managers; expanding the list of EuVECA eligible assets; and prohibiting fees imposed by competent authorities – will result in a greater number of SMEs getting access to the vital finance they need to grow their businesses.”
Commissioner Jonathan Hill said: “I am delighted as my last act as Commissioner to be announcing measures that will help strengthen European venture capital markets. We need European businesses to have more choice of funding and to be able to attract the investment they need here in the EU. This is another step in building the Capital Markets Union.”
The proposal has been submitted to the European Parliament and the Council (Member States) for adoption under the co-decision procedure.
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