EU plans to increase access to capital for SMEs

Proposals to cut red tape for companies seeking to raise capital have been welcomed today by Conservative MEP Richard Ashworth.

The ideas put forward by Briton’s EU Commissioner Lord Jonathan Hill particularly benefit small and medium sized businesses (SMEs) , which would be relieved of some of the costly burden of producing a lengthy, detailed prospectus each time they sought to raise funding by issuing shares or debt.

Mr. Ashworth, Conservative MEP for the South East of England believes that the planned changes will make it easier for UK SMEs to raise money.

“Access to investment is a big concern for a lot of businesses in the South East so I am particularly encouraged to see the European Commission taking steps to address this” he said.

“If handled correctly these plans could help to increase investment, boost growth and create jobs in the South East.”

The proposal now goes to the European Parliament and the European Council for discussion and adoption.

According to the Department for Business, Innovation and Skills (BIS) there are 878,00 SMEs in the South East of England and it is hoped that a number of them would benefit from better access to capital markets.