If you are developing a business around artificial intelligence, technologies that will help in understanding space, clean technologies, or biotechnology, there is a great chance that you will be able to apply for funding from EU funds in the next budget period and that these funds will be quite generous. Such messages can be read from the new document of the European Commission, Compass of Competitiveness, which states, among other things, that innovative European companies should not be forced to seek funding in the USA, Asia, or other markets to develop and grow.
It is no news that Europe lags behind in attracting capital for fast-growing companies, and financial fragmentation and bureaucratic obstacles slow down their development, which has motivated the Commission to announce a series of measures in the aforementioned document that should facilitate financing for innovative companies and encourage domestic, European investments in them to ensure the EU’s competitiveness on the global stage.
€300 billion is leaving
One of the key problems that the EU is trying to solve is the limited access to European capital for financing innovations. Every year, as much as €300 billion of savings from European citizens ends up in foreign markets, enabling the growth of foreign companies instead of being reinvested within the EU. To reverse this trend, the Commission plans to revise the European regulatory framework to reduce risks for business banks, investors, and venture capital, ensuring that fast-growing companies can find financing in Europe.
One of the key steps will be the development of the so-called European Union of Savings and Investments, which should unify banking markets and capital markets. This project is based on recommendations from Enrico Letta’s report, and its goal is to leverage the private savings of Europeans for investments in innovations, green technologies, and digital transformation.
