16 October 2002

Commission progress report on Risk Capital Action Plan

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The Commission released the forth annual report on progress in the implementation of the Risk Capital Action Plan (RCAP), which was adopted of the RCAP in 1998. Successive European Councils have set 2003 as the deadline to complete the Risk Capital Action Plan.

Market analysis suggests that the last 18 months has been a period of adjustment for the European risk capital industry. The severe correction, which started in mid-2000, still continuous and was particularly significant in the Accession Countries due to, among other things, their sensibility to global trends. In spite of the negative trend, however, the year 2001 was, for the European industry, the second highest both in terms of funds invested and of funds raised.

The modernisation of the regulatory framework has continued successfully in a financial environment. Compared with 1998, risk capital markets have not only grown but also matured. The current effort to improve the environment for risk capital investment should be maintained, and be seen from a long-term perspective, regardless of cyclical considerations. 2003 will be the final 'analysis' year on the RCAP - and a year to reflect whether further measures are necessary to enhance risk capital post-2003.

See press release
Commission progress report on Risk Capital Action Plan

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