Invest Europe Statement on the “Finance Europe” label

An opportunity to increase investments in productive assets

Invest Europe welcomes the statement of several Member States in support of developing a common framework for a “Finance Europe” label. It is essential that we redirect EU citizens’ savings to long-term investment opportunities that effectively finance Europe’s growth. A well-designed label would be an important step towards this objective.

When designing their respective labels, we call Member States to take into account that long-term investments, and in particular long-term investments in innovative and growing companies, have a certain series of characteristics that need to be taken into consideration by managers when setting up their products.  Particular care should be taken that the label favours asset classes that best contribute to Europe’s long-term competitiveness.

As this general framework is further developed, focus could also be brought to the development of a label for funds supporting start-ups & scale ups, as a way to help experienced investors find the right investment opportunities. 

As the association representing the entire European venture capital and private equity community, we very much support any initiative that would enhance the ability of institutional and sophisticated investors to commit capital to innovative businesses through venture and growth funds.

Would such an idea be put forward, our association will be read to help Member States determine the parameters of this label. Details on how venture capital and growth funds could be certified and what will be the certification criteria will indeed be key to the success of such a programme.

On behalf of its 650 members, Invest Europe will engage in the coming weeks with Member States to develop these initiatives in a way that is most efficient and most prone to foster the development of a long-term financing ecosystem.