In our recent study commissioned by the European Commission, Copenhagen Economics provides recommendations on how to boost the EU risk capital markets, explores mechanisms for increasing the risk-absorbing capacity of the EU support and offers insights into streamlining the overly bureaucratic application processes currently in place.
We find that:
- The European equity markets are trailing behind the US counterpart, especially for the small- and mid-cap segment there are large differences.
- From an intra-EU perspective, a market gap exists for equity investments both at national and sectoral level.
- The EU initiatives are on track overall, but the equity eco-system must be further strengthened, to fully utilise the potential of innovative SMEs.