EU to ease IPO rules for SMEs under plan
The European Union plans to make it easier for small firms to list on the stock exchange, under new measures that will be released on Wednesday as part of its Capital Markets Union (CMU) programme, the Irish Independent has learned.
In documents to be formally released this week and seen by the Irish Independent, the EU says that it will review regulatory barriers to small firms for their admission to trading on public markets.
The new CMU plan - which is being spearheaded by European Commission president Jean-Claude Juncker - will also see the EU develop a comprehensive package of measures to support venture capital and risk capital financing in the EU.
The overall aim of the CMU is to generate alternative sources of financing for Europe's businesses. "These would provide new sources of funding for business ... and make the economy more resilient," according to the EU documentation due this week.
"Capital Markets Union will help to mobilise capital in Europe and channel it to all companies, including SMEs, infrastructure and long-term sustainable projects that need it to expand and create jobs," according to the EU.
"The fact that in Europe our capital markets are not as developed as those in the US is a point of key concern," according to Fine Gael MEP Brian Hayes.