The European Commission should give special attention and promote the financial mobilisation of equities to fund non-speculative investment by services in small and medium enterprises in the peripheral, isolated and island regions of the European Union. Many small and medium companies in the European Union and many start-ups will prefer to experiment and innovate with investment and expansion at home before they step outside their border. If they make a success there, moves towards other European markets will be seen as achievable and attainable. Indeed, the cultural factors that define entrepreneurship cannot be ignored. ‘Again that had best be done by starting from a national level first.’ Dr. Alfred Sant, Head of the Labour Delegation told the European Parliament in Strasbourg.
The EP was discussing the ‘Capital Markets Union’ (CMU) launched by the European Commission to help build a true single market for capital across the 28 EU Member States. The Capital Markets Union (CMU), is a key pillar of the Investment Plan aimed to tackle investment shortages head-on by increasing and diversifying the funding sources for Europe’s businesses and long-term projects.

Dr. Sant said that Europe needs to develop a better way of mobilizing cash for investment on a national and European basis. The US does this much better than Europe. The claim is that by opening up new ways of mobilizing capital on a European scale, we shall be coming closer to American levels of getting cash to enterprises. But in parallel with this, capital markets need to be promoted on a national basis. Barriers there, regulatory and cultural, need to be removed.
It is necessary to define exactly what makes capital markets in the US so much more dynamic. However, it would be unwise to implement a CMU simply by transposing the US model to Europe. The proposals being made by the Commission do not go in this direction.
‘The Commission is doing the right thing by emphasizing the digital sector. Here, a new generation of European innovators and entrepreneurs is emerging. They might be more willing to attempt new ways of meeting financial risks and challenges than their predecessors.
In all this, the step by step approach that is being proposed is praiseworthy. Too many new procedures and regulations to follow would in the end only increase barriers to entry and costs. Let’s create and promote a CMU by using a light touch, one that makes the proper distinction between the need for regulation and over-regulation.’ Said Dr. Sant.

Maltese Version – ‘IL-KE GĦANDHA TGĦIN L-INDUSTRIJI ŻGĦAR U MEDJI FL-ISTATI GŻEJJER TAL-UE’

Il-Kummissjoni Ewropea għandha tagħti attenzjoni speċjali u tgħin l-investimenti ta’ intrapriżi żgħar u medji fi stati gżejjer u r-reġjuni iżolati u li qegħdin fil-periferija tal-Unjoni Ewropea. Il-Kap tad-Delegazzjoni Laburista fil-Parlament Ewropew qal dan meta tkellem fil-Parlament Ewropew dwar programm ġdid li l-Kummissjoni Ewropea qed tipproponi li ddaħħal biex impriżi fl-Ewropa jsibu finanzjar għall-proġetti tagħhom mingħajr ma jiddependu għal kollox mill-banek. Dr. Sant qal li dan huwa proġett li jeħtieġ jirnexxi, speċjalment biex ditti ġodda jkunu jistgħu jiktbu u joħolqu l-impjiegi u l-ġid.

Dr. Sant qal li ħafna kumpaniji żgħar u medji fl-UE jippreferu li l-ewwel jesperimentaw u jkabbru l-operat tagħhom f’pajjiżhom fejn ikunu stabilixxew ruħhom, qabel ma joħorġu lil hinn mill-fruntiera ta’ pajjiżhom. Jekk jagħmlu suċċess f’pajjiżhom, aktar ikunu mħeġġa biex jespandu fi swieq Ewropej oħra. Il-fatturi kulturali li jiffurmaw il-qafas intraprenditorjali, ma jistgħux jiġu injorati. ‘L-aħjar ħaġa hija li kollox jibda fuq livell nazzjonali.’ sostna Dr.Sant.

Dr Sant qal li l-Ewropa teħtieġ tiżviluppa l-investiment fuq livell nazzjonali u anki fuq livell Ewropew. ‘L-Istati Uniti tagħmel dan aħjar mill-Ewropa. Qed jintqal li b’metodi ġodda għar-rilaxxament tal-kapital fuq skala ewropea, inkunu qed nersqu aktar qrib il-livelli Amerikani tal-iffinzjar għall-intrapriżi. ‘Irrridu niddefinixxu eżatt x’jagħmel is-swieq kapitali tal-Istati Uniti dinamiċi. Fl-istess waqt irridu wkoll nħajru s-swieq kapitali fuq livelli nazzjonali u nneħħu x-xkiel regolatorju u kulturali.’

Dr Sant qal li l-Kummissjoni Ewropea qed tagħmel l-aħjar ħaġa meta tenfasizza is-settur diġitali. ‘Hawnhekk, qed titwieled ġenerazzjoni ġdida ta’ innovaturi Ewropej u imprendituri. Dawn jistgħu jkunu aktar miftuħa biex jippruvaw metodi ġodda li jagħmlu tajjeb għar-riskji finanzjarji u għad-diffikultajiet mill-ġenerazzjoni ta’ qabilhom.
F’dan kollu, il-metodu li qed ikun propost huwa ta’ tifħir għax jimxi pass wara pass. Ħafna proċeduri u regoli jżidu x-xkiel u l-ispejjeż. Ejja noħolqu u nippromwovu Unjoni tas-Swieq Kapitali billi nużaw id ratba, waħda li tagħmel distinzjoni tajba bejn il-ħtieġa għar-regoli u bejn ir-regolamentazzjoni eċċessiva.’ Qal Dr Sant.