News item | 17-03-2025 | 15:57
The Netherlands and other countries in the European Union stand for large and fundamental challenges: our economy must become more innovative, more productive and competitive. Only then can we keep our prosperity in the future. There are currently too many young, innovative companies from Europe. This is partly because it is difficult to find financing outside of banks. And while European consumers save a lot, this money is not sufficiently invested in European companies. The cabinet wants to turn this trend. Minister Heinen (Finance) has therefore shared the cabinet deployment on behalf of Minister Beljaarts (Economic Affairs) for the strengthening of the capital market union with the House of Representatives. The cabinet comes with concrete proposals from the Netherlands to strengthen the European economy.
Minister Heinen: “The key to our growth is in Europe. There is enough capital, but this must be invested. A well -functioning capital market union is crucial for this. This is in the interest of the Dutch economy: companies and citizens benefit from this. “
The internal market is currently fragmented. Every country within the EU has its own capital market with its own rules for investing and investing. As a result, money is difficult to flow from country to land. Many young, innovative companies leave for growing from Europe, partly because they have difficulty finding financing outside of banks. They then take their knowledge and innovation with them. This is not good for the Dutch and European economy. The capital is present: European consumers save a lot, but there are too few possibilities to invest this money in European companies. According to the cabinet, strengthening the European capital market union is therefore crucial. The government is therefore committed to improvement in three areas:
- Stronger European supervision of the capital market
- More and diverse range of capital for financing of companies
- Everywhere in the EU more equal rules for the proper functioning of the internal market
The cabinet proposes actions in each of these areas. For example, the government argues for strengthening direct European supervision of cross -border activities. This makes the capital market more attractive. Differences in the implementation of supervision between EU countries now lead to uncertainty, unnecessary regulatory pressure and extra costs for the financial sector, and therefore for citizens and companies.
In addition, the government wants more and more diverse range of financing to become available for companies, for example through more investments in venture capital for young tech companies through the European Investment Bank (EIB) and reinforcement of Pan-European investment funds such as the European Tech Champions Initiative (Etci), to which the Netherlands also financially contributes.
The government also wants to make it easier to invest (savings) money in other European countries or to invest. The government therefore argues for the development of an EU investment account on which countries can offer national tax benefits. This allows investors to invest more easily in European companies, for example through investment funds and Exchange Traded Funds (ETFS).
Finally, the government wants to find solutions in Europe to remove unjust barriers in the regulations and to strengthen the internal market. Capital is not always flowing to the right place, due to differences in rules about bankruptcies or annual reports. The European capital market is therefore fragmented, and this leads to higher costs for entrepreneurs and investors.