Improving the role of equity crowdfunding in Europe's capital markets. Bruegel Policy Contribution Issue 2014/09, August 2014

Crowdfunding is a growing phenomenon that encompasses several different models of financing for business or other ventures. Despite the hype, equity crowdfunding is still the smallest part of the crowdfunding market. Because of its legal framework, Europe has been at the forefront of equity crowdfunding market development. Equity crowdfunding is more complex than other forms of crowdfunding and requires proper checks and balances if it is to provide a viable channel for financial intermediation in the seed and early-stage market in Europe. It is important to explore this new channel of funding for young and innovative firms given the critical role these start-ups can play job creation and economic growth in Europe. We assess the potential role of equity crowdfunding in the overall seed and early-stage financing market and highlight the potential risks of equity crowdfunding. We describe the current state of play in this nascent industry, considering both the innovations introduced by market operators and existing regulation. Currently in Europe there is a patchwork of national legal frameworks related to equity crowdfunding and this should be addressed in a harmonised way.

The globalization of angel investments. Bruegel Working Paper 2015/09, 1 September 2015

The last decade has seen a rapid expansion and deepening of the types of vehicles that fund start-up firms in the U.S. and worldwide. In particular, we have seen a growing role of angel groups and other more “individualistic” funding options for start-ups, such as super angels or crowd sourcing platforms. Authors seek to understand the nature and consequences of angel investments across a variety of geographies with varying levels of venture capital markets and other forms of risk capital. They ask whether angel investors improve the outcomes and performance of the start-ups they invest in. Furthermore we want to understand whether and how the types of firms that seek angel funding vary with the overall entrepreneurial ecosystem in a country. Authors examine the records of 13 angel investment groups based in 12 nations and with applicants for financing transactions from 21 nations, examining both the applicants that were considered and rejected and those that were funded. Key findings from the analysis are two-fold. First, angel investors have a positive impact on the growth of the firms they fund, their performance, and survival. Second, they find that the selection of firms that apply for angel funding is different across countries.

The EU’s re-engagement as a security actor: Fresh start or still sleepwalking. CEPS Commentary, 12 July 2012

By the end of the summer, the EU will launch new crisis management missions in the Horn of Africa, Niger and South Sudan. In this CEPS Commentary, Giovanni Faleg and Steven Blockmans question whether the new deployments will revive the EU’s persona as a global security actor. The authors point out that, without the backing of a comprehensive security strategy rationale, the EU’s re-engagement as a crisis manager that opts for small-scale operations will be seen as a continuation of its sleepwalking through a changing geostrategic landscape.

The start-up fund - an elegant treaty mechanism for sustaining defence capabilities. Security Policy Brief No. 48, June 2013

When the European Council meets in December, it will face a range of decisions which will lay the foundations for Europe's defence posture and role in the wider world for decades to come, perhaps even beyond the remainder of this century. The Lisbon Treaty has, for the first time, equipped the EU with the range of means to meet that role in practice. The question that remains to be answered is whether Europe's leaders have the political will to implement those means in full.

Ireland gets the new Trio Presidency off to a propitious start. CEPS Commentary, 30 August 2013

The Irish Presidency of the Council of the EU (January-June 2013) faced numerous challenges, not least of which was to negotiate the financial framework for the period 2014-2020 and the reform of the Common Agricultural Policy with the European Parliament, as well as the pressure to advance the banking agenda. Moreover, the fact that it was the start of a new Trio Presidency, the small size of the Irish administration and its fragile financial situation gave rise to some doubts as to how much it could achieve. Nevertheless, this post mortem on the Irish presidency finds that the Irish government approached the task with realism and optimism, a firm focus on results and the strong conviction that a good performance would enhance its reputation at home and in the EU. It is now for Lithuania and subsequently Greece, in the first half of 2014, to continue to tackle the remaining formidable challenges.

Now We Are One...A Rough Start for the EEAS

The first year of the European External Action Service (EEAS) has already elicited much comment, both internally and externally. This contribution briefly reviews the nature of this commentary and then suggests some possible short-term ‘wins’ for the Service, as well as some challenges that will require a longer-term perspective. The main shorter-term issue considers the need to create stronger linkages and priorities between existing strategies and to start the difficult process of melding a common mindset within the Service. The longer-term challenges revolve around recruitment, balance and resources. The latter is particularly important in order to enable the delegations to assume their full roles. The barrage of criticism that greeted the EEAS’s first birthday is also a commentary on how critical the role of the Service is to achieving the core goals of the Lisbon Treaty in external relations; namely, to aim towards more coherence, effectiveness and visibility.

A Proper Yield Curve for Greece to Kick-Start Financial Intermediation. ECMI Policy Brief No. 21, 10 December 2013

At present, the market is severely mispricing Greece’s sovereign risk relative to the country’s fundamentals. As a result of the mispricing, financial intermediation in Greece has become dysfunctional and the privatisation of state-owned assets has stalled. This mispricing is partially due to an illiquid and fragmented government yield curve. A well-designed public liability management exercise can lead to a more efficient pricing of Greece’s government bonds and thereby help restore stable and affordable financing for the country’s private sector, which is imperative in order to overcome Greece’s deep recession. This paper proposes three measures to enhance the functioning of the Greek government debt market: i) Greece should issue a new five-year bond, ii) it should consolidate the 20 individual series of government bonds into four liquid securities and iii) it should offer investors a swap of these newly created bonds into dollar-denominated securities. Each of these measures would be beneficial to the Hellenic Republic, since the government would be able to reduce the face value and the net present value of its debt stock. Furthermore, this exercise would facilitate the resumption of market access, which is a necessary condition for continuous multilateral disbursements to Greece.

A New Start for the EU’s Area of Freedom, Security and Justice? Setting of Priorities for the New European Commission. CEPS Commentary, 23 September 2014

The nomination of a First Vice-President (Frans Timmermans) in charge of rule of law and the EU Charter of Fundamental is one of the more far-reaching innovations contained in the new institutional shape of the Juncker Commission. This CEPS Commentary by Sergio Carrera and Elspeth Guild welcomes the fact that a new fundamental rights and rule of law First Vice-President will exercise a coordination and advisory role over the other two JHA Commissioners – Věra Jourová, responsible for Justice, Consumers and Gender Equality (DG Justice); and Dimitris Avramopoulos, responsible for Migration and Home Affairs (DG Home Affairs), but expresses a note caution whether this new role and triangular relationship can be made to work effectively in practice.