EU Members Urged To Hurry Securities Markets And Tax Reforms

by Ulrika Lomas, Tax-News.com, Brussels

29 October 2001

The European Commission has called on EU member states to hurry through securities markets and tax reforms in order to meet the 2003 Risk Capital Action Plan (RCAP) deadline.

In a statement issued following the mid-term review of the action plan, which requires countries to implement the financial services action plan and Lamfalussy proposals, remove tax obstacles, promote entrepreneurship, and reach an agreement on a Europe-wide patent scheme, the EC said that there had been progress made by member states, but that it had been patchy.

The Commission warned that despite recent growth, the European venture capital market was still falling behind that of the US, due to its fragmented nature and various disadvantageous tax regimes. However, the Internal Market Commissioner, Fritz Bolkestein revealed on Thursday that he is optimistic that structural and tax reforms will be achieved in time: 'I am confident that the European venture capital industry will emerge stronger and more competitive from the current cyclical downturn,' he said.

However, he urged EU member countries to move quickly, adding: 'Member states should without further delay press ahead with implementing the action plan to facilitate investment and stimulate risk capital especially now the industry is suffering a downturn and faces uncertainty.'

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