The document discusses ways to attract more international investment to the EU to boost economic growth. It analyzes case studies of corporate, private, and institutional investors. A survey found that Swiss SMEs plan over 50% of foreign investments in the EU but are concerned about bureaucracy. Recommendations include reducing red tape, enhancing SME access to financing, and considering the international perspective in Capital Markets Union policies to remove obstacles preventing greater foreign investment.
Improving the business environment and access to finance for SMEsOECDglobal
Presentation by Ms. Kristin Schreiber, Director, COSME Programme, DG GROW, European Commission - EU financial instruments available for SMEs from the EU enlargement region, at the Launch of the SME Policy Index for the Western Balkans and Turkey 2016. 28 April 2016, OECD, Paris, France.
This seminar, hosted jointly by the British Embassy and Afi School of Finance, was aimed at companies seeking alternative financing, as well as investors looking for new investment opportunities. It was also of interest to government officials and regulators.
'Invest Europe the voice of private capital' annual report 2015-16. Interesting Company http://www.investeurope.eu/
Office Address
Bastion Tower
Place du Champ de Mars 5
B-1050 Brussels Belgium
Tel.: +32 2 715 00 20
Fax: +32 2 725 07 04
Email: info@investeurope.eu
NERI Seminar Dublin: How much would a Financial Transactions Tax raise?NevinInstitute
In 2011 the European Commission outlined proposals for a Europe wide financial transactions tax (FTT). Since then the proposal has been pursued by ten countries under ‘enhanced cooperation’ procedures with plans evolving to introduce the tax during 2016/2017. To date Ireland has not signed up to adopting a FTT.
This paper estimates the revenue that Ireland would collect from participating in the European FTT. Drawing on data from official sources, it first establishes the size of the FTT tax base for Ireland. Subsequently, the paper estimates a baseline tax revenue and considers the robustness of this estimate using a suite of sensitivity tests.
The paper finds that were Ireland to adopt a FTT, the net revenue yield would be between €320m and €360m per annum.
Your guide to Private Equity in Luxembourg by the Luxembourg Private Equity & Venture Capital Association. (reprinted in 2017 with membership figures updated)
The document summarizes a workshop between Zambia and Finland aimed at promoting partnerships for green growth. It discusses the objectives of strengthening business linkages and exchanging opportunities. Three work groups focused on mining, private sector development, and infrastructure/construction. They identified challenges like lack of transparency, technical skills and financing for SMEs. Opportunities included partnerships, training, and sharing new technologies. The groups recommended creating common information platforms, strengthening SME clusters, and developing long-term partnerships between Finnish and Zambian companies.
This document summarizes the key findings of PwC Luxembourg's 2016 Luxembourg Fund Governance Survey. Some of the main points covered include:
- The survey had a record number of 124 participants, a 50% increase from 2014, showing greater focus on governance issues.
- On average, fund and management company boards in Luxembourg have 4-6 members including the chairman.
- An overwhelming majority of boards now appoint a permanent chairman rather than rotating the role, except for some alternative funds.
- There is greater emphasis on board diversity in terms of experience, skills, gender and independence. Digitalization and cybersecurity are emerging issues.
The survey looked at various aspects of board composition
Improving the business environment and access to finance for SMEsOECDglobal
Presentation by Ms. Kristin Schreiber, Director, COSME Programme, DG GROW, European Commission - EU financial instruments available for SMEs from the EU enlargement region, at the Launch of the SME Policy Index for the Western Balkans and Turkey 2016. 28 April 2016, OECD, Paris, France.
This seminar, hosted jointly by the British Embassy and Afi School of Finance, was aimed at companies seeking alternative financing, as well as investors looking for new investment opportunities. It was also of interest to government officials and regulators.
'Invest Europe the voice of private capital' annual report 2015-16. Interesting Company http://www.investeurope.eu/
Office Address
Bastion Tower
Place du Champ de Mars 5
B-1050 Brussels Belgium
Tel.: +32 2 715 00 20
Fax: +32 2 725 07 04
Email: info@investeurope.eu
NERI Seminar Dublin: How much would a Financial Transactions Tax raise?NevinInstitute
In 2011 the European Commission outlined proposals for a Europe wide financial transactions tax (FTT). Since then the proposal has been pursued by ten countries under ‘enhanced cooperation’ procedures with plans evolving to introduce the tax during 2016/2017. To date Ireland has not signed up to adopting a FTT.
This paper estimates the revenue that Ireland would collect from participating in the European FTT. Drawing on data from official sources, it first establishes the size of the FTT tax base for Ireland. Subsequently, the paper estimates a baseline tax revenue and considers the robustness of this estimate using a suite of sensitivity tests.
The paper finds that were Ireland to adopt a FTT, the net revenue yield would be between €320m and €360m per annum.
Your guide to Private Equity in Luxembourg by the Luxembourg Private Equity & Venture Capital Association. (reprinted in 2017 with membership figures updated)
The document summarizes a workshop between Zambia and Finland aimed at promoting partnerships for green growth. It discusses the objectives of strengthening business linkages and exchanging opportunities. Three work groups focused on mining, private sector development, and infrastructure/construction. They identified challenges like lack of transparency, technical skills and financing for SMEs. Opportunities included partnerships, training, and sharing new technologies. The groups recommended creating common information platforms, strengthening SME clusters, and developing long-term partnerships between Finnish and Zambian companies.
This document summarizes the key findings of PwC Luxembourg's 2016 Luxembourg Fund Governance Survey. Some of the main points covered include:
- The survey had a record number of 124 participants, a 50% increase from 2014, showing greater focus on governance issues.
- On average, fund and management company boards in Luxembourg have 4-6 members including the chairman.
- An overwhelming majority of boards now appoint a permanent chairman rather than rotating the role, except for some alternative funds.
- There is greater emphasis on board diversity in terms of experience, skills, gender and independence. Digitalization and cybersecurity are emerging issues.
The survey looked at various aspects of board composition
The document summarizes a private equity forum held by PwC in Luxembourg on June 5, 2014. It includes sections on the market update, impacts of AIFMD on the private equity industry, fundraising trends globally and in Luxembourg, investments and exits, the SICAR vehicle structure and costs, and forces that will shape private equity in the coming months. Key highlights are strong global fundraising in 2013, high prices and exit activity, dominance of SIF and Part II funds in Luxembourg, and implications of increasing regulations.
Luxembourg is a small but wealthy country located in Western Europe. It has a population of around 525,000 and is renowned as an international financial center with a stable economy and AAA credit rating. Luxembourg has developed into a major hub for investment funds and private banking due to its business-friendly environment, extensive tax treaty network, and flexibility in structuring investment vehicles. It offers a prime location for multinational corporations and investors to base their business operations.
The document summarizes key priorities and positions of the Finnish Financial Sector regarding the EU financial policy agenda for 2019-2023. The priorities include:
1. Ensuring stable and reliable financial markets through consistent EU rules and supervision while limiting additional regulation.
2. Developing the European banking union cautiously, only increasing risk sharing after reducing banks' risks, and reviewing sovereign debt treatment.
3. Continuing to diversify and deepen EU capital markets after Brexit in a market-driven way without new taxes like a financial transaction tax.
4. Promoting sustainable finance through transparency and incentives while avoiding overregulation and market uncertainty.
Estonia promotes foreign direct investment through agencies like Enterprise Estonia and the Estonian Investment and Trade Agency. Estonia offers a number of benefits for foreign investors, including a stable business environment, low costs, a highly skilled workforce, and being located close to other European markets. Estonia has successfully attracted foreign investment through developing its infrastructure and business-friendly policies rather than subsidies. The ICT, transportation, manufacturing, and financial sectors represent key opportunities for investment.
This document discusses using Luxembourg in international structures. It notes Luxembourg's central location in Europe, status as a top financial center, multi-cultural workforce, and favorable tax environment. It then provides details on typical structures like holding companies, financing companies using hybrid instruments, and intra-group financing activity. Structures are shown to benefit from participation exemption, reduced withholding taxes, and interest deductions.
This document summarizes a presentation on money market fund taxation. It discusses various tax issues including investor taxation across different jurisdictions, fund taxation, and investment taxation. Specific topics covered include the EU financial transaction tax, automatic exchange of information programs like FATCA and CRS, and the OECD's base erosion and profit shifting project. The presentation notes the complex tax compliance obligations facing money market funds and the importance of minimizing taxation at the portfolio level.
The Luxembourg government took the opportunity of the transposition of the AIFMD into Luxembourg law to revamp the limited partnership regime with the aim at making it more attractive for fund managers - in particular, private equity managers.
In a nutshell, the law has revamped the existing limited partnership regime (“CLP” - common limited partnership or “SCS” - société en commandite simple) and introduced a new type of partnership (“SLP” - special limited partnership or “SCSp” - société en commandite spéciale).
The purpose of this user guide is not to provide an exhaustive accounting, legal and tax framework but rather to answer some of the typical questions private equity managers and service providers may have when setting up and administering a Luxembourg limited partnership vehicle.
Capital V #8 Building an Onshore Hub for Private EquityLPEA
Featured articles:
LPEA on Brexit
Venture Capital in Luxembourg
Avishai Avrahami (Wix): How to create a $1bn Start-up
Reform of Luxembourg Corporate Law: What’s in it for you ?
Common Reporting Standards
Interview with Michael Phillips, Castik Capital
Alternative Investments in (Luxembourg) Insurance
Digital Customer due diligence is the way forward
2015 Update to IPEV Valuation Guidelines
Leading domicile for Microfinance Investments Funds
The German PE Market in 2015
The evolving role of Fashion in the Luembourg business world
Market Figures
The document discusses key goals and factors for Croatian enterprises related to exporting. It provides:
1) Questions that will be addressed about coping with crises, exporting to foreign markets, and functioning within the EU single market and CEFTA market.
2) An overview of PEST analysis and typical factors including political, economic, social, and technological considerations.
3) Current situations for Croatian enterprises including benefits and challenges of joining the EU such as duty-free trade but also economic instability and a need to restructure exports.
This document provides an overview of Business France, the French government agency supporting international business development. It discusses France's ongoing business reforms, including tax cuts and increased flexibility. Support for businesses in France is also outlined, such as interest-free loans, grants and tax exemptions available from the central government, local authorities, and agencies like BpiFrance. Specific support available in the Pays-de-la-Loire region is also mentioned.
Credit Finance for Tech companies in Europe - Presentation by Alex McCracken, Director of Silicon Valley Bank at the NOAH 2014 Conference in London, Old Billingsgate on the 14th of November 2014.
Dubai Conference - Legal and Regulatory UpdateBishr Shiblaq
This seminar gave an update on the Luxembourg UCITS framework, addressed the Alternative Investment Fund Managers Directive (AIFMD), provided an update on the tax-treaty network with a particular focus on Turkey and India as well as present practical cases of recent Shari’ah-compliant transactions and updates on the existing legal framework.
The Policy Framework for Investment (PFI) is a non-prescriptive tool for improving investment policy for development. It helps governments to design and implement policy reforms to create a truly attractive, robust and competitive environment for domestic and foreign investment. The OECD is currently conducting a multi-stakeholder update of this instrument ensure its continued impact in a world that has significantly changed over the past seven years.
Find out more about the PFI and the update process at http://www.oecd.org/investment/pfi.htm
This document discusses government policies to support micro-firm development. It begins by outlining the important role micro-firms play in job creation and economic growth. It then examines common constraints micro-firms face like access to finance and regulatory burdens. The document proposes that governments create policies addressing these obstacles through approaches like regulatory simplification, improved access to markets and finance, support for skills and innovation, and targeted programs for internationalization. Finally, it provides examples of good practice policies from several European countries that support micro-firms through various stages of development using business advisory services, incubators, training programs and other initiatives.
2016 Sep 15 Brexit implications for UK start-ups - Jens Düing vFINALJensinho
i. The document discusses possible implications of Brexit for UK startups and their financiers. It outlines four potential post-Brexit scenarios for the UK's relationship with the EU, ranging from remaining in the single market to a customs union only.
ii. Regarding access to markets, the document notes that about half of UK exports are to the EU but Brexit will not necessarily affect all of these, and startups rank British, US, and Chinese markets as most important. Access to major markets could continue with small exceptions.
iii. For access to talent, the document suggests visa regulations may favor highly skilled workers similar to existing non-EU arrangements, and London will remain an attractive destination.
iv. Con
Tekes funding as bridge to co operation with chinese companiesBusiness Finland
Tekes is the main public funding organization for R&D and innovation in Finland. It provides grants, loans, and capital investments to innovative Finnish companies, universities, and other organizations. Tekes has a budget of 610 million USD annually and focuses on growth-seeking SMEs and strategic innovations. Tekes cooperates with Chinese organizations through national agreements and joint funding calls between Tekes and Chinese partners. Through these joint calls, Chinese and Finnish companies can receive funding for collaborative projects, with funding provided according to each country's principles. Experiences with the joint calls have been positive, with efficient operations and important matchmaking and capacity building events.
TCI Clusters and smart specialization: A new European buzzword or a real oppo...TCI Network
This document summarizes a presentation about clusters and smart specialization strategies in Europe. It discusses how smart specialization is a key part of European regional policy, requiring all regions to develop innovation strategies through an entrepreneurial discovery process. This provides opportunities for cluster involvement. The presentation highlights several regional examples of cluster involvement in smart specialization strategies from places like Sweden, the Czech Republic, France, Spain, and Germany. It also notes some mixed results with cluster involvement in Aragon and opportunities for clusters through European projects and cross-border cooperation, despite challenges in the economic environment.
Alessandro Carano is Adviser to the deputy Director General of the European Commission Directorate for Economic and Financial Affairs. He works on the Investment Plan for the Europe and the European Fund for Strategic Investment.
He was previously Managerial adviser and Head of Unit at European Investment Bank, responsible for the institutional relationship with EU Institutions and other IFIs on policies and activities outside the EU. He led the negotiations on the new EIB External Lending Mandate for the period 2014-2020, allowing up to EUR 30bn in EIB financing in support of EU external action. He contributed to the establishment of the Western Balkans Investment Framework and other blending mechanisms. He worked on the Mid Term review of EIB external mandate including support to the steering committee of wise persons chaired by M. Camdessus, and subsequent codecision procedure. He has also worked in the Projects directorate of the EIB. Previously he worked for Procter & Gamble. He holds an MBA from Vlerick management school and engineering MSc degree from Turin Politechnic University.
This document discusses attracting international investment to boost economic growth in the EU. It presents three case studies:
1) A survey of Swiss SMEs found their main concern when investing internationally is time-consuming bureaucracy. Despite limited capital market use, 20% see the EU common capital market as important.
2) Private investors can help fund long-term projects like infrastructure. EU policies should encourage private investment through enhanced regulation, better taxation, and streamlined alternative investment registration and distribution.
3) UK infrastructure case studies show public-private partnerships can fund projects through innovative financing like contingent guarantees. The IMF argues infrastructure investment can stimulate growth.
The document discusses the European Commission's Green Paper on the Capital Markets Union initiative. It provides an overview of the Capital Markets Union, including its key drivers and principles. It also summarizes some of the early initiatives proposed under CMU, such as high-quality securitization, improving SME credit information, and encouraging the uptake of ELTIFs. Finally, it outlines the Commission's questions posed in the Green Paper related to further developing capital markets in Europe.
The document summarizes a private equity forum held by PwC in Luxembourg on June 5, 2014. It includes sections on the market update, impacts of AIFMD on the private equity industry, fundraising trends globally and in Luxembourg, investments and exits, the SICAR vehicle structure and costs, and forces that will shape private equity in the coming months. Key highlights are strong global fundraising in 2013, high prices and exit activity, dominance of SIF and Part II funds in Luxembourg, and implications of increasing regulations.
Luxembourg is a small but wealthy country located in Western Europe. It has a population of around 525,000 and is renowned as an international financial center with a stable economy and AAA credit rating. Luxembourg has developed into a major hub for investment funds and private banking due to its business-friendly environment, extensive tax treaty network, and flexibility in structuring investment vehicles. It offers a prime location for multinational corporations and investors to base their business operations.
The document summarizes key priorities and positions of the Finnish Financial Sector regarding the EU financial policy agenda for 2019-2023. The priorities include:
1. Ensuring stable and reliable financial markets through consistent EU rules and supervision while limiting additional regulation.
2. Developing the European banking union cautiously, only increasing risk sharing after reducing banks' risks, and reviewing sovereign debt treatment.
3. Continuing to diversify and deepen EU capital markets after Brexit in a market-driven way without new taxes like a financial transaction tax.
4. Promoting sustainable finance through transparency and incentives while avoiding overregulation and market uncertainty.
Estonia promotes foreign direct investment through agencies like Enterprise Estonia and the Estonian Investment and Trade Agency. Estonia offers a number of benefits for foreign investors, including a stable business environment, low costs, a highly skilled workforce, and being located close to other European markets. Estonia has successfully attracted foreign investment through developing its infrastructure and business-friendly policies rather than subsidies. The ICT, transportation, manufacturing, and financial sectors represent key opportunities for investment.
This document discusses using Luxembourg in international structures. It notes Luxembourg's central location in Europe, status as a top financial center, multi-cultural workforce, and favorable tax environment. It then provides details on typical structures like holding companies, financing companies using hybrid instruments, and intra-group financing activity. Structures are shown to benefit from participation exemption, reduced withholding taxes, and interest deductions.
This document summarizes a presentation on money market fund taxation. It discusses various tax issues including investor taxation across different jurisdictions, fund taxation, and investment taxation. Specific topics covered include the EU financial transaction tax, automatic exchange of information programs like FATCA and CRS, and the OECD's base erosion and profit shifting project. The presentation notes the complex tax compliance obligations facing money market funds and the importance of minimizing taxation at the portfolio level.
The Luxembourg government took the opportunity of the transposition of the AIFMD into Luxembourg law to revamp the limited partnership regime with the aim at making it more attractive for fund managers - in particular, private equity managers.
In a nutshell, the law has revamped the existing limited partnership regime (“CLP” - common limited partnership or “SCS” - société en commandite simple) and introduced a new type of partnership (“SLP” - special limited partnership or “SCSp” - société en commandite spéciale).
The purpose of this user guide is not to provide an exhaustive accounting, legal and tax framework but rather to answer some of the typical questions private equity managers and service providers may have when setting up and administering a Luxembourg limited partnership vehicle.
Capital V #8 Building an Onshore Hub for Private EquityLPEA
Featured articles:
LPEA on Brexit
Venture Capital in Luxembourg
Avishai Avrahami (Wix): How to create a $1bn Start-up
Reform of Luxembourg Corporate Law: What’s in it for you ?
Common Reporting Standards
Interview with Michael Phillips, Castik Capital
Alternative Investments in (Luxembourg) Insurance
Digital Customer due diligence is the way forward
2015 Update to IPEV Valuation Guidelines
Leading domicile for Microfinance Investments Funds
The German PE Market in 2015
The evolving role of Fashion in the Luembourg business world
Market Figures
The document discusses key goals and factors for Croatian enterprises related to exporting. It provides:
1) Questions that will be addressed about coping with crises, exporting to foreign markets, and functioning within the EU single market and CEFTA market.
2) An overview of PEST analysis and typical factors including political, economic, social, and technological considerations.
3) Current situations for Croatian enterprises including benefits and challenges of joining the EU such as duty-free trade but also economic instability and a need to restructure exports.
This document provides an overview of Business France, the French government agency supporting international business development. It discusses France's ongoing business reforms, including tax cuts and increased flexibility. Support for businesses in France is also outlined, such as interest-free loans, grants and tax exemptions available from the central government, local authorities, and agencies like BpiFrance. Specific support available in the Pays-de-la-Loire region is also mentioned.
Credit Finance for Tech companies in Europe - Presentation by Alex McCracken, Director of Silicon Valley Bank at the NOAH 2014 Conference in London, Old Billingsgate on the 14th of November 2014.
Dubai Conference - Legal and Regulatory UpdateBishr Shiblaq
This seminar gave an update on the Luxembourg UCITS framework, addressed the Alternative Investment Fund Managers Directive (AIFMD), provided an update on the tax-treaty network with a particular focus on Turkey and India as well as present practical cases of recent Shari’ah-compliant transactions and updates on the existing legal framework.
The Policy Framework for Investment (PFI) is a non-prescriptive tool for improving investment policy for development. It helps governments to design and implement policy reforms to create a truly attractive, robust and competitive environment for domestic and foreign investment. The OECD is currently conducting a multi-stakeholder update of this instrument ensure its continued impact in a world that has significantly changed over the past seven years.
Find out more about the PFI and the update process at http://www.oecd.org/investment/pfi.htm
This document discusses government policies to support micro-firm development. It begins by outlining the important role micro-firms play in job creation and economic growth. It then examines common constraints micro-firms face like access to finance and regulatory burdens. The document proposes that governments create policies addressing these obstacles through approaches like regulatory simplification, improved access to markets and finance, support for skills and innovation, and targeted programs for internationalization. Finally, it provides examples of good practice policies from several European countries that support micro-firms through various stages of development using business advisory services, incubators, training programs and other initiatives.
2016 Sep 15 Brexit implications for UK start-ups - Jens Düing vFINALJensinho
i. The document discusses possible implications of Brexit for UK startups and their financiers. It outlines four potential post-Brexit scenarios for the UK's relationship with the EU, ranging from remaining in the single market to a customs union only.
ii. Regarding access to markets, the document notes that about half of UK exports are to the EU but Brexit will not necessarily affect all of these, and startups rank British, US, and Chinese markets as most important. Access to major markets could continue with small exceptions.
iii. For access to talent, the document suggests visa regulations may favor highly skilled workers similar to existing non-EU arrangements, and London will remain an attractive destination.
iv. Con
Tekes funding as bridge to co operation with chinese companiesBusiness Finland
Tekes is the main public funding organization for R&D and innovation in Finland. It provides grants, loans, and capital investments to innovative Finnish companies, universities, and other organizations. Tekes has a budget of 610 million USD annually and focuses on growth-seeking SMEs and strategic innovations. Tekes cooperates with Chinese organizations through national agreements and joint funding calls between Tekes and Chinese partners. Through these joint calls, Chinese and Finnish companies can receive funding for collaborative projects, with funding provided according to each country's principles. Experiences with the joint calls have been positive, with efficient operations and important matchmaking and capacity building events.
TCI Clusters and smart specialization: A new European buzzword or a real oppo...TCI Network
This document summarizes a presentation about clusters and smart specialization strategies in Europe. It discusses how smart specialization is a key part of European regional policy, requiring all regions to develop innovation strategies through an entrepreneurial discovery process. This provides opportunities for cluster involvement. The presentation highlights several regional examples of cluster involvement in smart specialization strategies from places like Sweden, the Czech Republic, France, Spain, and Germany. It also notes some mixed results with cluster involvement in Aragon and opportunities for clusters through European projects and cross-border cooperation, despite challenges in the economic environment.
Alessandro Carano is Adviser to the deputy Director General of the European Commission Directorate for Economic and Financial Affairs. He works on the Investment Plan for the Europe and the European Fund for Strategic Investment.
He was previously Managerial adviser and Head of Unit at European Investment Bank, responsible for the institutional relationship with EU Institutions and other IFIs on policies and activities outside the EU. He led the negotiations on the new EIB External Lending Mandate for the period 2014-2020, allowing up to EUR 30bn in EIB financing in support of EU external action. He contributed to the establishment of the Western Balkans Investment Framework and other blending mechanisms. He worked on the Mid Term review of EIB external mandate including support to the steering committee of wise persons chaired by M. Camdessus, and subsequent codecision procedure. He has also worked in the Projects directorate of the EIB. Previously he worked for Procter & Gamble. He holds an MBA from Vlerick management school and engineering MSc degree from Turin Politechnic University.
This document discusses attracting international investment to boost economic growth in the EU. It presents three case studies:
1) A survey of Swiss SMEs found their main concern when investing internationally is time-consuming bureaucracy. Despite limited capital market use, 20% see the EU common capital market as important.
2) Private investors can help fund long-term projects like infrastructure. EU policies should encourage private investment through enhanced regulation, better taxation, and streamlined alternative investment registration and distribution.
3) UK infrastructure case studies show public-private partnerships can fund projects through innovative financing like contingent guarantees. The IMF argues infrastructure investment can stimulate growth.
The document discusses the European Commission's Green Paper on the Capital Markets Union initiative. It provides an overview of the Capital Markets Union, including its key drivers and principles. It also summarizes some of the early initiatives proposed under CMU, such as high-quality securitization, improving SME credit information, and encouraging the uptake of ELTIFs. Finally, it outlines the Commission's questions posed in the Green Paper related to further developing capital markets in Europe.
This document provides an overview of the Investment Plan for Europe and the European Fund for Strategic Investments (EFSI). Some key points:
- The Investment Plan aims to mobilize €315 billion in investments by providing an EU guarantee to the EFSI, which will support strategic investments through the EIB and EIF.
- EFSI will have two windows - one for infrastructure and innovation projects, and one focused on SMEs and mid-caps. It aims to address market failures and mobilize private investment.
- The Plan has three pillars: mobilizing finance, making finance reach the real economy, and improving the investment environment through regulatory and structural reforms.
- Tools under the Plan include
The document summarizes Lucia Cusmano's presentation at the AECM Annual Seminar in Berlin on June 19, 2015 about building a conducive environment for innovative small- and medium-sized enterprises (SMEs). It discusses challenges SMEs face such as access to finance and regulations, and how business investments have shifted to non-OECD countries. It also outlines an OECD project to benchmark SME performance and business environment policies across countries to help address these challenges.
The document is an OECD economic survey of Luxembourg that discusses several key topics:
1. Luxembourg has one of the highest GDP per capita and well-being outcomes in the OECD due to high incomes from the large financial sector.
2. However, the economy is highly dependent on the financial sector, creating vulnerabilities. Economic diversification could raise productivity and reduce risk.
3. Other sections evaluate strengthening the financial sector through regulation, raising productivity through more R&D investment, improving education, and increasing female labor participation to further diversify the economy.
Asset management in Europe_The case for reform-DigitalToby Illingworth
The asset management industry plays a key role in Europe's economy by raising money from investors and reinvesting it across a wide range of activities. It accounted for 29% of global assets under management in 2012. Asset managers help encourage economic investment across Europe by investing over €6 trillion in assets in 2013. This benefits the over 22.5 million European households that are invested in mutual funds. A sound and vibrant asset management industry is important for economic growth in Europe as banks continue to de-risk.
Zecchini Financing Sme Innovation Sz Slides 15 4 09nick terch
The document discusses challenges SMEs face in financing innovation during an economic downturn. It notes SMEs, especially innovative ones, are harder hit than large firms due to higher risk and weaker finances. However, SMEs are important for long-term growth. The document focuses on the scale of financial problems for R&D and innovation at SMEs, common obstacles, and solutions adopted in OECD countries like loan guarantees, tax incentives, and public-private partnerships.
This document discusses expanding business into the UK and provides information about UKTI support services. Some key points:
- UKTI provides various services to support both new investors and export businesses expanding into the UK, including introductions, advice, reports, location selection help, tax advice, visa support, and ongoing government assistance.
- The UK is highlighted as a top destination for business expansion due to its vast market opportunity, favorable business environment, high quality of life, access to talent, and attractive tax regime.
- Choosing a business location is an important decision, as it impacts costs and revenues. Various regions and locations in the UK offer different advantages in terms of labor costs, office rents, and more.
Horizon 2020 SME Instrument: financing your innovative business with EU fundsSviatoslav Sviatnenko
The document provides an overview of financing innovative businesses through EU funds, specifically the Horizon 2020 program. It discusses the Horizon 2020 SME Instrument, which provides grants of €0.5-2.5 million for demonstration and commercialization projects. The success rate is around 6%. The summary also highlights a Ukrainian company that received €1.2 million in funding through the SME Instrument for their cloud-based photovoltaic workflow project. The funding will help the company enter the European market and contribute to the competitiveness of the European microelectronics industry.
Crowdfunding law and regulation - EU and national issuesPaul Massey
Introduction to crowdfunding and peeling back the layers of EU and national legislation. Challenges to Capital Markets Union and cross-border investment with a particular look at the Prospectus Directive.
The document discusses the need for a Capital Markets Union (CMU) in the EU to overcome financial challenges by breaking down cross-border investment barriers. It notes that EU financial markets are underdeveloped compared to other economies, limiting business financing options. It recommends the Council welcome the European Commission's CMU initiative to unlock financing for EU businesses and boost growth. Specifically, it recommends prioritizing 3 of the 6 proposed CMU action items in the short-term, focusing on both economic and social responsibility, and considering recommendations like lowering capital market access barriers and developing private placement markets.
A brief introduction of Horizon 2020 and focus on SCoRE Cymru which provides grants in order to stimulate participation by Wales-based organisations in European collaborative research and innovation and in particular the European Union Research programmes within Horizon 202
This document provides an agenda for an economic forum on trade statistics. The forum will include presentations and discussions on tackling global measurement challenges in trade statistics, understanding complex multi-national businesses, 21st century trade statistics, new frontiers in trade analysis, and the role of data in policy debates around trade. There will be refreshment breaks between sessions and a round-up and closing remarks at the end.
Accessing European Research and Innovation Funding Seminar for SMEs : EENInvest Northern Ireland
The document provides an overview of the Enterprise Europe Network (EEN), which is the world's largest support network for small and medium-sized enterprises (SMEs) with international ambitions. Key points include:
- EEN has over 3,000 locations across more than 60 countries, providing locally-based support and connections globally.
- Services include helping SMEs innovate through collaboration, commercialize ideas, access funding/financing, and expand internationally.
- Support ranges from advisory services, innovation support, and facilitating international partnerships between businesses.
This document discusses UK support for Horizon 2020, the EU's research and innovation program from 2014-2020. It describes Innovate UK, the UK innovation agency that invests over £350 million annually to stimulate business innovation. Innovate UK helps UK businesses access Horizon 2020 funding and maximise benefits. Horizon 2020 has a budget of €70.2 billion to fund research that drives jobs and economic growth and addresses societal challenges like health, energy, transport and climate change. National contact points provide guidance to help UK organizations participate successfully in Horizon 2020.
The document provides information on the EU Investment Plan and its components: the European Fund for Strategic Investments, the European Investment Advisory Hub, and the European Investment Project Portal. The Investment Plan aims to mobilize finance for investment across the EU without creating new public debt. It establishes the European Fund for Strategic Investments to provide enhanced risk-bearing capacity and mobilize private and public investments. The European Investment Advisory Hub provides advisory support to help strengthen investment environments and projects. The European Investment Project Portal serves as an online meeting place for project promoters and investors.
The document summarizes an EBRD program to support small and medium enterprises (SMEs) in Ukraine, Georgia, and Moldova as part of their implementation of Deep and Comprehensive Free Trade Agreements (DCFTAs) with the EU. The EBRD will provide €475 million in funding through various windows including improving SME access to long-term financing, facilitating cross-border trade, providing business advice, and engaging in policy dialogue. The program aims to strengthen SMEs in the partner countries to better implement obligations under their DCFTAs with the EU.
1. The EU and its Partners:
Attracting International Investors
How can the EU work with its partners?
2. Europe’s economic situation remains fragile
Source: Global competitiveness report, World Economic Forum0
10
20
30
40
50
60
70
80
90
Switzerland
Singapore
US
Finland
Germany
Japan
HongKong
Netherlands
UK
Sweden
Norway
UAE
Denmark
Taiwan
Canada
Qatar
NZ
Belgium
Luxembourg
Malaysia
Austria
Australia
France
SaudiArabia
Ireland
SKorea
Israel
China
Estonia
Thailand
Chile
Indonesia
Spain
Portugal
CzechRepublic
Lithuania
Latvia
Poland
Turkey
Malta
Italy
Kazakhstan
Russia
Bulgaria
SouthAfrica
Brazil
Cyprus
Romania
Hungary
Mexico
Macedonia
Montenegro
Slovenia
India
Morocco
Slovakia
Ukraine
Croatia
Greece
Global competitiveness index, 2014 – 2015
EU countries
Non-EU
countries
• The EU has made progress since the financial crisis, stabilising the Monetary
Union and launching the Banking Union.
• Nevertheless, Europe’s economic recovery has been subdued.
• One of the key weaknesses has been investment.
• Global surveys of competitiveness show that Europe has fallen back.
• Europe needs to pursue its multi-pronged competitiveness agenda with full force.
Source: The Global Competitiveness Report 2014-2015, World Economic Forum. Note: Numbers represent ranking in index; the lower the number the higher in the ranking.
3. Weak investment contributes to Europe’s slowdown
• Europe is a low growth area.
• Weak investment is at the heart of
Europe's weak growth, both cyclically
and structurally.
• Strengthening investment would raise
Europe's short-term growth
momentum as well as its long-term
growth potential.
• But, surveys show that Europe's
attractiveness to foreigners needs to
improve.
• A lot of work is under way:
• Structural reform agenda
• Juncker Plan
• Capital Markets Union
Euro area investment still subdued
Source: Haver
4. How can international investors help to boost
Europe’s economy?
• Our Discussion Paper examines how international investors can support the
growth and jobs agenda and contribute to the Capital Markets Union (CMU).
• Three case studies analyse the needs of three types of international investors:
corporate, private and institutional investors:
1. Case study on how to boost Private Equity and mobilise investment from private
investors
2. Case study on attracting international investors into infrastructure projects
3. Survey amongst Swiss SMEs considering investment in the EU
• Our Paper shows that there remain important obstacles that prevent
international investors from investing in the EU.
• We put forward some case-specific recommendations to boost investment and
share ideas for the policy-making process.
5. CASE STUDY 1 -
Attracting international private investors
• Private Equity markets could play a substantial role in investment funding.
• Private Equity is a source of funding for long-term projects and SMEs which are less
likely to attract more traditional forms of investment.
• But, Private Equity is under-developed in Europe (USD 641bn vs USD 2,000bn in US):
• Restrictive regulatory regime (e.g. client classification)
• Unfavourable tax legislation (withholding taxes, capital gains tax)
• High hurdles for registration of alternative investment vehicles
• Cumbersome administrative processes and red tape, not least for private placements
• Recommendations for reform of the Private Equity framework:
• Review retail client classification in MiFID – it is too wide and hence restrictive
• Make targeted adjustments to tax systems
• Harmonise interpretation of the AIFMD passport across the EU (review in 2017)
• Make a pan-European marketing passport available to non-EU AIFMs
• Mobilising UHNW savings could be very effective:
• Globally, cash holdings account for more than 25% of total wealth
• Need for diversification, open to long-term investment and Private Equity
6. CASE STUDY 2 -
Attracting institutional investors to large infrastructure projects
Novel funding strategies are key
1. Thames Tideway Tunnel (TTT)
• Large project size and long planning horizon made the TTT project unsuitable for PPP.
• TTT project had novel funding structure that combined public and private funding.
• Risk to private investors was limited to industry-standard of smaller projects.
2. Channel Tunnel / High Speed 1 / Eurostar
• Government support/risk control in construction phase, then monetization.
• 30-year concession to two Canadian pension funds.
• Lessons learned:
• Encourage efficient risk-sharing (via contingent guarantees, Project Bonds, LGTTs).
• Promote increased standardisation (new standardised asset class, standard docs).
• Enhance comparability and transparency (infrastructure pipeline, risk transparency).
• Address further legislative and regulatory burdens (Solvency II classification of infrastructure
as non-liquid asset class).
• Create public competence centres and strive towards more efficient procurement processes.
• Create a transparent and reliable framework for dispute resolution.
7. CASE STUDY 3 –
Attracting corporate investments: the view of Swiss SMEs
The survey targeted internationally-oriented Swiss SMEs. It shows that SMEs
remain very keen to invest in the EU, despite some concerns.
Source: Credit Suisse/S-GE Industry Survey 2015
EU-15 EU member states 2004/ 2007 North America China Asia (except China) ROW
• Swiss SMEs plan to locate more
than 50% of their international
investments in the EU in 2016
8. FDI is a highly desirable form of investment
The world scaled to sources of FDI inflows into the EU
Total stock Foreign Direct Investment (FDI) in the EU is estimated at EUR 13.7 trn
in 2013/2014. Of this Switzerland provided EUR 0.6 trn.
Source: Eurostat; Average 2013-2014
9. SMEs are the backbone of the EU and Swiss economies
• In both the EU and
Switzerland, 99.8% of all
enterprises are SMEs
Micro (0-9 employees) Small (10-49 employees)
Medium (50-249 employees) Large (over 250 employees)
Micro (0-9 employees) Small (10-49 employees)
Medium (50-249 employees) Large (over 250 employees)
Source: Eurostat, Swiss Federal Statistics
Micro (0-9 employees) Small (10-49 employees)
Medium (50-249 employees) Large (over 250 employees)
Micro (0-9 employees) Small (10-49 employees)
Medium (50-249 employees) Large (over 250 employees)
European Union Switzerland
• In the EU and Switzerland,
SMEs employ 67% and 70%
of all employees respectively
10. EU and Swiss SMEs are quite international
Source: EU survey 2010,, Credit Suisse Industry Survey 2014
0% 20% 40% 60% 80% 100%
25% of SMEs are involved in exports
29% of SMEs import goods from abroad
44% of SMEs maintain at least
one form of an international
business relationship
0% 20% 40% 60% 80% 100%
25% of SMEs are involved in exports
SMEs report 16% average share of exports in total sales
42% of imported goods and services
are sold unprocessed
60% of SMEs purchase input goods
from abroad
69% of SMEs produce
abroad
European Union Switzerland
11. Source: Ernst & Young, Credit Suisse/S-GE Industry Survey 2015
0% 10% 20% 30% 40% 50%
Strong dependency on energy imports
Low innovation capacity
Lack of political governance at EU level
Others
High unemployment rates
Competition among European countries
Geopolitical unrest at its frontiers
Low economic growth
High public debt
Too much bureaucracy
EY-survey Swiss SME survey
The main issues companies see in the EU
• The main concern of Swiss
SMEs is ‘red tape’ and too
much bureaucracy
12. Recommendations to improve cross-border
investments by (domestic and foreign) SMEs
• Reduce ‘red tape’ within member economies by promoting best practices
• Our survey shows that less ‘red tape’ would stimulate third-country SME investment.
• EU should promote best practices based on experiences of Member States and non-
EU countries.
• Enhance SME access to finance by promoting the Capital Markets Union and
Banking Union implementation and completion
• Despite the limited use of the capital markets today, a fifth of Swiss SMEs consider a
common capital market in the EU a priority.
• Strong banks can add to the funding sources of SMEs.
• ‘Think Small First’ to foster overall conditions favourable to SME investments
• SMEs are disproportionally impacted by ill-conceived regulations.
• Importance of the Commission’s 'Small Business Act‘.
• In line with the EU Better Regulation Agenda.
13. Our conclusions: enhance the international dimension of the
Capital Markets Union
• Europe can remove important obstacles that prevent international investors from
contributing to the success of the CMU.
• Our Discussion Paper develops a number of recommendations that could
reinforce the EU’s attractiveness to foreign investors.
• In addition, we encourage the EU to embrace the international dimension in its
policy-making, based on the following steps:
1. Pursuing an enhanced approach to equivalence determinations for third
countries;
2. Communicating the EU’s openness to investment from the outside world;
3. Championing consistent international standards;
4. Establishing formal regulatory dialogue with relevant third country
authorities.