Afme, capital markets supported EU businesses in the first half of 2021
In 2021, the search for capital by companies emerging from the pandemic increased theactivity on European capital markets, according to a report published today by AFME, the Association for Financial Markets in Europe, in collaboration with ten other European and international organizations.
The fourth edition of the report “Key performance indicators of the Capital Markets Union”Tracks the progress made by individual Member States against eight key performance indicators against parameters such as access to market finance, bank lending levels, the transition to sustainable finance and on conditions favorable to fintech.
Adam Farkas, Chief Executive of AFME, said: “European capital markets have remained resilient this year and have continued to support businesses. In fact, our report indicates a growth in the resources collected on the markets. However, we cannot stop in complacency. There remains a “capital gap”, a structural equity gap caused by the pandemic and equity-based financing needs to expand further in Europe. It also remains to be seen to what extent these record levels of market funding will continue or whether they are a temporary consequence of last year’s extraordinary support measures.
“Our report also indicates that much remains to be done to improve the availability of venture capital to meet the increased long-term investment needs of the transition to a ‘green and digital economy, improve the functioning of securitisations and address long-standing friction on EU capital markets, such as the inefficiency of withholding tax collection procedures. In this regard, the project of theUnion of Capital Markets remains essential for the single market and must be fully implemented. “
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