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European Commission launches financial incentive strategy to keep startups in Europe

2025-05-28 15:35:00, Kosova & Bota CNA

European Commission launches financial incentive strategy to keep startups in

The European Commission launched a strategy designed to boost and grow small tech companies on Wednesday, as part of a broader "Choose Europe" initiative aimed at competing with China and the US. The document sets out key actions to help companies set up and grow in the EU, including easier access to finance and infrastructure and reducing administrative burdens.

Currently, around 8% of new companies worldwide are located in Europe.

A report by former Italian Prime Minister Mario Draghi published last year found that 61% of global funding for artificial intelligence companies goes to US-based companies, 17% to Chinese ones and just 6% to those in the EU.

To address this gap, a fund, based on a public-private partnership, will be launched early next year to encourage startups to scale up.

"Capital matters and Europe has it. We need to connect it to the needs of innovators," said European Commissioner Ekaterina Zaharieva, during the launch of the strategy.

The Commission also aims to simplify the rules to set up a new business within 24 hours and enable companies operating in 27 different EU member states to be subject to a single business regime.

The proposal also plans to reduce the cost of failure of startup projects by addressing bankruptcy issues. /CNA

 

 

 

 

 

 





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