Report
On 15 January 2026, the European Commission published a call for evidence to improve the ability of venture and growth capital funds to support the EU real economy, innovation, growth and competitiveness.
Finance Watch welcomes the Commission’s initiative to expand the scale and improve operational conditions for EU venture and growth capital funds. Targeted policy initiatives such as the revision of the European Long-Term Investment Fund (ELTIF) Regulation and the European Venture Capital (EUVeCa) Regulation have the potential to channel private capital into innovation, in particular for the transition to a more sustainable economy, thus contributing to a more productive and sustainable EU economy.
However, Finance Watch highlights that development and promotion of investment tools alone will not remove all the barriers to increasing access to capital for the EU start-ups and companies and even more so redirecting capital flows to the sectors of the economy, in particular where they can contribute the most to social and economic welfare. Finance Watch highlights the importance of adopting a holistic approach to foster EU cross-border investments, reduce market fragmentation and increase financing. This refers to the Finance Watch response to the call for evidence on the Commission’s Communication on European Savings and Investments Union from March 2025. Moreover, Finance Watch underlines that the revision of the EUVeCa should not lead to a reduction of the necessary investor protection mechanisms. Maintaining trust in financial markets will be essential to fostering investments in the European economy.”
