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EU Commission: launch of a Start-up and Scale-up Initiative

29.11.2016

The EU Commission has recently launched a Start-up and Scale-up Initiative, aimed at encompassing all possibilities available for start-ups already offered by the EU, while adding focus on insolvency law, venture capital investment and taxation. It gathers existing and new actions to create a more coherent framework, where start-ups can grow and do business across Europe. This initiative will aim to address a number of issues, and amongst a number of things, it will help:  

  • improve access to finance: a Pan-European Venture Capital Fund of Funds will be launched in collaboration between the Commission and the European Investment Bank Group (EIBG);
  • in giving a second chance for entrepreneurs via a legislative proposal on insolvency law.  The restructuring of companies in financial difficulties will prevent bankruptcy and avoid employees’ dismissal. It will allow entrepreneurs to benefit from a second chance, without being penalised for not succeeding in previous ventures, as debt will be fully discharged after a maximum of 3 years;
  • facilitate tax filings through the simplifier tax schemes that  will be launched, including the recent proposal for a Common Consolidated Corporate Tax Base (CCCTB);
  • simplify the EU VAT system and broaden the forthcoming guidance on best practice in member states tax regimes for venture capital; and
  • improve innovation support and foster ecosystems where start-ups can connect with potential partners.

Furthermore, it will pave the way towards the amendments to Horizon 2020. Over 2018-2020, €1.6bn will be used to provide bottom-up support for breakthrough innovation projects by start-ups.

Finally, proposals for a ‘Single Digital Gateway’ will be put forward, for citizens and businesses to give online access to single market information and procedures.