European Parliament approves new rules for social investments and venture capital
Tuesday, 12 March 2013
European parliament has today voted overwhelmingly in favour of a bill enabling the creation of a new fund for social entrepreneurship (EuSEF), as well as introducing Europe-wide regulation of venture capital.
The changes to the law regarding the creation of the new fund will take immediate effect, creating a brand new kind of European investment fund for the social economy.
Commissioner Barnier has welcomed the vote, saying“These new EU initiatives will increase opportunities for innovative start-ups or social businesses to find capital.
“Better funding for smaller companies is key for Europe’s economy and it is now up to enterprising fund managers to seize the new opportunities as a matter of urgency”.
Sven Giegold, German Green MEP and vice-president of the Intergroup for Social Economy, has hailed today’s decision as a great success:
“The EuSEF legislation has for the first time created a fund that lays the foundations for the strengthening of the social economy. A social economy is the right response to one of the key problems that has pushed us into the current crisis: the short-term pursuit of profit.”
Giegold further predicts that the amendments will lead to positive outcomes in areas such as social housing, and will unlock potential for improved fair-trade agreements with developing countries.