Small businesses need alternatives to the bank

"Better access to funding, especially for Small and Medium-Sized Enterprises (SMEs), is a key element on our way out of the economic crisis caused by the Coronavirus pandemic. Our main tool would be to finalise the building of a single market for capital in the European Union", said Isabel Benjumea MEP, Rapporteur on the European Parliament’s input on how to improve the conditions of SMEs in the Capital Markets Union.

She points out that although banks have helped companies and families stay afloat during the Coronavirus pandemic, alternative channels of funding need to be found.

"Looking forward, we want a strong European capital market, where companies can also get equity investments directly from the market and individuals can safely investment their money, including their pension money."

Isabel Benjumea thinks that the Capital Markets Actions plan presented by the European Commission ticks many of the right boxes.

"Nevertheless, there are still major obstacles for a well-functioning Capital Markets Union at national level where, for instance, different insolvency rules or different taxation prevent many cross-border investments. We therefore need a stronger commitment from EU Member States, the financial sector and the European Institutions to make this happen", Benjumea concluded.