ECN’s response to the European Commission’s consultation on Capital Markets Union


The European Crowdfunding Network welcomes the European Commission’s Green Paper on Capital Market Union (CMU) that among other objectives seeks to enable alternative forms of financing, including crowdfunding.

The CMU was launched back in February, with the aim of mainly  breaking down the barriers that are blocking cross-border investments in the EU and preventing businesses from getting access to finance. Among various proposed actions, the EC looks at crowdfunding and how cross-border investments through online portals could be facilitated.

As a first step of the CMU program, the Commission asked feedback to all the stakeholders through a public consultation. ECN collected the comments and ideas of its members and elaborated an opinion letter which was submitted last week. It included the following suggestions, among many others:

An efficient capital market union must remove cross-border barriers for Europe’s entrepreneurs and investors and reinforce incentives. This means also reviewing – simplifying – financial regulations in order to create optimal framework conditions for businesses. Without lifting restrictions and a substantial pick-up in private investment activity, the economic recovery will not be on a solid footing.

By introducing a harmonised regime allowing cross-border investments through crowdfunding, both SMEs and crowdfunding platforms would be able to fully tap the European capital market. Such a European approach would only require crowdfunding platforms to obtain one single authorisation/registration from any competent authority within the EEA to be able to offer their services on a cross-border basis throughout the whole EEA.

You can download and read ECN’s answers to the public consultation on CMU here.



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