13 September 2024

EuropeanIssuers Welcomes Mario Draghi’s Report on the Future of European Competitiveness

EuropeanIssuers believes that achieving this goal requires a clear commitment to reducing regulatory burdens and the achievement of the Capital Markets Union (CMU), both of which are crucial to enabling innovation.

EuropeanIssuers welcomes the highly anticipated Report on the Future of European Competitiveness drafted by Professor Mario Draghi, former president of the European Central Bank and Prime Minister of Italy.

The Report underscores the paramount importance of ensuring the availability of financing for innovative and sustainable projects, in order to drive innovation and restore Europe's global competitiveness. EuropeanIssuers believes that achieving this goal requires a clear commitment to reducing regulatory burdens and the achievement of the Capital Markets Union (CMU), both of which are crucial to enabling innovation.

In line with Mr Draghi’s Report, EuropeanIssuers is concerned by the increasing regulatory burden placed on European companies, particularly SMEs. This aspect, coupled with the fragmentation of the Single Market and Capital Markets, is a disincentive for companies to remain listed or pursue Initial Public Offerings (IPOs) on European exchanges. Namely, the number of listed companies has overall declined in Europe over the past years.

Such a fragmented outlook hinders Europe’s competitiveness and the free flow of capital, which is essential for fostering innovation. EuropeanIssuers believes that easing administrative burdens for all companies will facilitate and incentivise access to capital markets. This would allow companies to gather greater resources to finance innovative and sustainable projects.

Mr Luc Vansteenkiste, Chair of EuropeanIssuers and Member of the EFRAG Sustainability Reporting Board said: for Europe to succeed in its ambitious Green Deal project, substantial innovation efforts will be of vital importance to restore the leading productivity position Europe always had and to continue to be capable of holding its economic position in a fast-moving world. Such innovation requires large financial support, which is only achievable through a perfect match between capital markets and banks, together with other financial resources such as European subsidies.

Ms Florence Bindelle, Secretary General of EuropeanIssuers, commented: The report comes at a crucial time for our Continent and underscores the wide array of interdependent challenges affecting Europe in this historical period. EuropeanIssuers remains committed to the reduction of reporting and administrative burdens by 25 percent and to advocating for easier access to capital via the completion of the Capital Markets Union. We look forward to more frequent discussions on these topics during the new legislative cycle.

These vital items to support European businesses were also included in EuropeanIssuers’ Manifesto “Key Messages for the New Legislative Cycle (2024-2029)”.

EuropeanIssuers and its Members remain engaged in further delving into the Report, in order to explore further areas of convergence and offer a more in-depth assessment.

European Issuers

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