Following the announcement from the European Union today setting out a road map for boosting capital markets across its 28 members, in an effort to spur investment in the region, Michael McKee, Partner at DLA Piper, said:
“Top-down initiatives like this often give with one hand and take away with the other. Should the EU impose a heavy set of conditions in return for access to non-bank finance, the CMU may harbour similar risks. The European Commission’s existing SME financing initiative, in which more lending is contingent on improvements to corporate governance more suitable for larger businesses, is a good example of how an apparently beneficial policy can impose extra burdens.”
