EU Commission attempts finance boost to keep start-ups in Europe

Published on 28/05/2025 - 15:21 GMT+2

The European Commission launched a strategy designed to foster and turn mini tech start-up companies connected Wednesday arsenic portion of a broader Choose Europe inaugural aimed astatine competing pinch China and nan US.

The document sets out key actions to thief companies group up and turn successful nan EU, including easier access to finance and infrastructure and reducing administrative burdens.

Currently, immoderate 8% of nan start-ups passim nan world are based successful Europe.

A report by erstwhile Italian premier Mario Draghi published past twelvemonth recovered that 61% of world backing for AI companies goes to US-based companies, 17% to Chinese and conscionable 6% to those successful nan EU.

To reside this gap, a fund, based connected a public-private partnership, will beryllium launched by nan opening of adjacent twelvemonth to promote start-ups to scale-up. 

“Capital matters, and Europe has it. We request to link it to nan needs of nan innovators,” European Commissioner Ekaterina Zaharieva said, while launching nan strategy. 

“A clear backing spread persists – to reside cardinal challenges and trim marketplace fragmentation, we will squad up pinch backstage investors,” she added. 

Simplification

The Commission besides intends to simplify rules to group up a start-up successful 24 hours and to alteration companies operating crossed nan 27 different EU personnel states to beryllium taxable to 1 business regime. 

The connection besides plans to trim nan costs of nonaccomplishment of start-up projects by addressing  insolvency issues.

"We person 30,000 early shape start-ups. We don't deficiency ideas, and we request a scheme to maximise the potential,” Zaharieva said.