📰 #ICYMI
🚀 𝗧𝗵𝗲 𝗿𝗼𝗹𝗲 𝗼𝗳 𝘁𝗮𝘅𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝘁𝗵𝗲 𝗙𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗘𝘂𝗿𝗼𝗽𝗲𝗮𝗻 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲𝗻𝗲𝘀𝘀 Mario Draghi’s 𝗙𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗘𝘂𝗿𝗼𝗽𝗲𝗮𝗻 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲𝗻𝗲𝘀𝘀 𝗥𝗲𝗽𝗼𝗿𝘁 is out this week! 📊 Let’s have a look at what it says about the role of taxation on the development of the European VC / Growth markets. 𝗧𝗵𝗲 𝗣𝗿𝗼𝗯𝗹𝗲𝗺 Venture capital and growth finance are crucial for bridging the financial gap of innovative start-ups in the EU. However, the under-development of pension funds and the untapped potential of business angels are major hurdles according to the report. On the tax front, the report highlights the following obstacles for these markets to reach their potential: • Differences in tax incentives across the EU • Substantially unaligned tax regimes among Member States • High cost of tax compliance 𝗧𝗵𝗲 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻 Direct government investment (including an enlarged role of the European Investment Fund (EIF) 👍😍) are put forward as part of the solution. But in order to unlock private investment, the report suggests that: • EU citizens should be able to invest in other Member States without facing complex taxation procedures or double taxation • Regulatory / tax fragmentation should be reduced • Taxation related to capital investments should be synchronised Earlier this year, I collaborated with Invest Europe on an article advocating for a standardized EU-pooling vehicle to overcome exactly these obstacles in the European VC / Growth market. Read it here ⬇ https://lnkd.in/eTpXqdGy