The European Commission (EC) is due to announce its strategy for capital markets in Europe, which is intended to facilitate access to alternative sources of funding, thus reducing the high dependence on bank funding by corporates.

Euractiv reports that the strategy is expected to include a broad set of initiatives, which will be implemented by 2019. These will include:

• measures to support venture capital and risk capital financing in the EU;
• the promotion of best practices on tax incentives to attract investors;
• opening up financial services to the securitisation market;
• amendment of rules on European Venture Capital Funds (EuVECA) and the European Social Entrepreneurship Fund (EUSef) to allow larger fund managers to establish and market these funds, as they are presently limited to portfolios below 500 million euros;
• proposals for a pan-European venture capital fund-of-funds, and multicountry funds;
• review of regulatory barriers for the admission of SMEs on public markets;
• a review of the corporate bond markets in the EU; and
• proposals to strengthen the use of innovative instruments, such as crowdfunding.

According to the Commission, European SMEs receive fives times less funding from capital markets compared to their US counterparts.

The Commission's intention is to progressively build up the Capital Markets Union (CMU) by 2019. Today's announcement will contain a 33-point list with specific deadlines.