The European Commission today announced the launch of a capital markets union action plan, to provide a “true single market for capital” across the 28 EU Member States. A goal of the action plan is to boost business funding and investment financing across borders. As part of this initiative, the action plan would aim to remove cross-border tax barriers and address the debt/equity bias as well as tax incentives.
According to the EC release, in breaking down barriers that are blocking cross-border investments in the EU, this would make it easier for companies and infrastructure projects to get needed finance, regardless of their location. The initial steps include the relaunch of high-quality securitisation to promote long-term investment in infrastructure. By the end of the year, the EC intends to announce proposed changes to the Prospectus Directive so as to make it easier and less expensive for small and medium-sized companies to raise capital.
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