Regulation (EU) 2019/2115

Ce que fait l'acte

to facilitate access to capital for smaller and medium-sized enterprises. PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: newly listed small and medium-sized enterprises (SMEs) are a key driver of investment and job creation. However, despite the benefits, EU public markets for SMEs are struggling to attract new issuers. The number of Initial Public Offerings on SME-dedicated markets steeply declined in the European Union in the wake of the crisis, and did not significantly pick up since. The Committee on Economic and Monetary Affairs adopted the report by Anne SANDER (EPP, FR) on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 596/2014 and (EU) 2017/1129 as regards the promotion of the use of SME growth markets. The proposed legislative amendments aim in particular at lowering the administrative burden and compliance costs faced by SME Growth Market issuers and resulting from the application of the Market Abuse Regulation and the Prospectus Regulation. This initiative also seeks to promote liquidity by ensuring that any SME Growth Market issuer in the EU can enter into a liquidity provision contract. The committee recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the Commission's proposal. Horizontal Union policy for SMEs : the amended text underlined that the diversification of SME lending is a guarantee for the economic health of the EU and stressed the need for additional regulations to ensure that SMEs can be matched up with arrangements such as business angels, seed capital, risk capital, etc. Parliament clarified that small and medium-sized enterprises’ or ‘SMEs’ shall mean companies, which, according to their last annual or consolidated accounts, meet at least two of the following three criteria : an average number of employees during the financial year of less than 250, a total balance sheet not exceeding EUR 43 million and an annual net turnover not exceeding EUR 50 million. Reducing administrative costs and improving information to SMEs : the attractiveness of SME growth markets should be reinforced by further reducing the compliance costs and administrative burdens faced by SME growth market issuers. There is a need for a sharper focus on SMEs – the subjects of this Regulation – and their needs. The amended text stressed that cutting red tape is a vital part of that process, but other steps also need to be taken. Efforts need to be made to improve the information that is directly available to SMEs about the financing options open to them. EU Growth Prospectus : the EU Growth Prospectus is a condensed form of the full prospectus to be published when securities are offered to the public or are admitted to trading on a regulated market, which includes essential information and documentation. The EU Growth Prospectus is shorter and therefore cheaper to produce, reducing costs for SMEs. SMEs…