Rethinking investments in Europe
ECN is engaged in a few projects with the aim of creating a better environment for private investments into European SMEs and of decreasing their dependency from bank financing. Crowdfunding can in fact help increasing the level of private investments, while providing a transparent channel for it.
The projects deal with the following challenges:
- Investment in Europe remains heavily reliant and dependent on banks
- Significant differences in financing conditions between Member States exist
- There are differing rules and market practices for financial products
- Shareholders and buyers of corporate debt rarely go beyond their national borders when they invest
- Many SMEs still have limited access to finance.
And they tackle the following objectives:
- Unlock the capital around Europe which is currently frozen and put it to work for the economy, giving savers more investment choices and offering businesses a greater choice of funding at lower costs
- Develop a more diversified financial system complementing bank financing with deep and developed capital markets
- Establish a genuine single capital market in the EU where investors are able to invest their funds without problems across borders and businesses can raise the required funds from a diverse range of sources, irrespective of their location.