Part 5/8:
Currently, many European firms are limited to raising capital within their national markets, which hinders growth and innovation. This limited access is a primary reason why Europe has not produced tech firms on par with their U.S. counterparts. Europe’s tech sector is hampered not only by financing issues but also by regulatory challenges. For instance, the General Data Protection Regulation (GDPR) has had a notable impact on small tech firms, reportedly reducing their profits by up to 12% according to a 2021 analysis.
Implementing a CMU could streamline capital raising processes and facilitate investment across national boundaries, spurring economic growth and productivity within the EU.