Fund bodies have welcomed plans for a "Capital Markets Union", which seeks to make investment in businesses more efficient across Europe andreduce their dependence on banks.
The European Union (EU) set out its roadmap for the Capital Markets Union this week. Its aims of reducing fragmentation in European markets and increasing cross-border capital flows are intended to boost the flagging economy.
Small companies in particular will benefit if the EU plan works.
The European Private Equity and Venture Capital Association (EVCA) and the German Fund Association (BVI) welcomed the European Commission's Green Paper, Building a Capital Markets Union.
The EVCA notes the paper identifies private equity as an important source of direct financing and says the private equity industry can help deliver the EU's ambitions in various ways, such as by unlocking €12 trillion of institutional capital and connecting fund managers with institutional investors and European companies.
The BVI says it also supports the idea of integrated capital markets, which would create more opportunities for investors while at the same time provide corporates and governments with new sources of finance.
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