European companies, especially SMEs, face a structural challenge of access to finance and the stock markets play a pivotal role in solving this problem. The Renew Europe Group welcomes today’s adoption by the Committee on Economic and Monetary Affairs (ECON) of the Listing Act Package, which aims to ease access to finance for companies by facilitating listing on stock exchanges and alleviating the administrative burden, essential to support their growth and resilience.
MEP Eva Poptcheva (Ciudadanos, Spain), Vice-Chair of the Committee on Economic and Monetary Affairs and Renew Europe shadow on the Listing Act Package, stated:
“Our SMEs need easier access to capital market financing in order to grow and compete internationally. With this report, the European Parliament sends a strong message: we need to cut red-tape and complete the Capital Markets Union”
The endorsed text makes sure that the costs for companies wishing to list on stock exchanges are reduced, whilst investors are protected. In addition, competent authorities will be able to investigate any potential market abuse more effectively.
Moreover, the final compromise leads to enhanced visibility of the SMEs to investors and introduces the possibility of adopting multiple-vote share structures everywhere in the EU. This will ensure that start-ups and family-owned companies are no longer reluctant to go public for fear of losing decision-making power over a company they have set up.