News

2 July 2020

Equity: the key to unlocking a sustainable economic recovery Joint statement

Accountancy Europe, CFA Institute, the European Bank for Reconstruction and Development (EBRD) and the Federation of European Stock Exchanges (FESE) have issued key recommendations for the European Commission and EU member states to harness the potential of capital market integration in post-COVID recovery.

The post-COVID economic recovery must aim for long-term resilience, support a sustainable transition and greener economy, and help smaller businesses get back on track. We believe that these recommendations will take Europe closer to these objectives.

  • A revamped CMU which balances between private and public markets is a must.
  • The proposed fund for EU IPOs should be pan- European and support both IPOs and secondary issuances, while contributing to relaunching IPOs.
  • To re-equitise the economy, a concrete proposal for the fund through public/private partnerships should be drafted.
  • The various stimulus packages should include specific bridge financing for viable SMEs/growth companies that were planning IPOs when the Covid crisis hit.
  • Measures to address taxation issues:
    • Call on the EU and member states to address the existing debt-equity bias on taxation. This invariably will require measures to strengthen equity investments over measures that favour debt.
    • A pan-European framework for withholding taxes in order to foster cross-border investment.
    • To encourage and facilitate access to growth finance in the aftermath/recovery phase of the Covid crisis, a tax alleviation for companies that go public/do an IPO could be considered.
    • For the bridge financing and tax benefit proposals above, emphasis should be given to the E-part of ESG: green investments and fund raisings that are aligned with the green criteria of the EU taxonomy, as well as, the S part of ESG: for companies that have made financial sacrifices in order to protect jobs.

“By joining together with representatives of other key capital market players such as stock exchanges, investment professionals and investors, Accountancy Europe wants to underline the common strength of the multi-faceted capital market ecosystem as a whole. The accountancy profession itself plays a key role in fostering financial market transparency and assurance on reported information, thus enhancing capital markets’ stability and helping to mitigate risks for investors.” 

Olivier Boutellis-Taft, Accountancy Europe CEO

The full statement is available here.

Photo credit: EU Parliament

Related content

PublicationEuropean IPO Report 2020

6 March 2020

EventEarly Warning Europe SME summit

30 September 2021

EventSustainable financing 101 – State of play and next steps

24 June 2021

EventRoad to digital: How to support SMEs

16 June 2021

BlogSustainability risk management for SMEs: inaction is not an option

14 June 2021

UpdateSME Update

14 June 2021

NewsJoint statement on sustainable corporate governance

8 June 2021

Consultation responseFeedback statement: EU Taxonomy Article 8 Delegated act

3 June 2021

Stories from PracticeDigitalising the accountancy profession: what role for young professionals?

31 May 2021

Publication3-step sustainability assessment for SMEs

12 May 2021

EventCorporate Sustainability Reporting Directive: Roadmap to implementation

12 May 2021

PublicationAccountants – REACT now and help SMEs adapt to new VAT e-commerce rules

6 May 2021

EventFrom risks to resilience: benefits of intellectual property for your business

4 May 2021

EventWorking Together for the planet: Audit & Assurance of sustainability Information

29 April 2021

NewsAccountancy Europe: Future-proofing tax to make it green, digital and fair

26 April 2021

UpdateSME Update

22 April 2021

NewsAccountancy Europe welcomes EU progress on sustainability reporting standards

21 April 2021

NewsNew directive takes EU corporate sustainability reporting to the next level

21 April 2021

EventFuture-proofing tax: make it green, digital, fair

15 April 2021

PublicationAudit exemption thresholds in Europe

9 April 2021

PublicationRoad to digital: what are the obstacles for SMEs and SMPs?

8 April 2021

Sign up for our newsletter

* indicates required
Would you like to subscribe to our newsletter?
On which topics would you like to receive news?