FESE discussion paper: Removing Barriers to Public Listings and Growth in EU Capital Markets
Strong primary markets are a strategic asset for the European economy. They enable companies to raise long term capital, scale, and remain anchored in Europe as they grow, while offering investors transparent access to value creation. Vibrant public markets are also essential to delivering the EU’s broader ambitions, from strengthening competitiveness and advancing the Savings and Investment Union to financing the green and digital transitions. Sustaining and revitalising EU primary markets is therefore critical to Europe’s long term growth and economic resilience.
In this context, FESE has published a discussion paper on “Removing Barriers to Public Listings and Growth in EU Capital Markets”, calling for renewed political attention to primary markets and outlining potential actions to build on the Listing Act and further improve the attractiveness and effectiveness of EU primary markets.
The discussion paper highlights key considerations across three main areas:
1. Facilitating entry to regulated markets and MTFs
A harmonised implementation of the Listing Act remains essential. In addition, sufficient attention should be given to consistent transposition and application across Member States of related frameworks such as the Transparency Directive, the Shareholder Rights Directive, and the Market Abuse Regulation. Targeted listing incentives should also be considered, combining supply-side measures (e.g. IPO Bonus) with demand-side support for both institutional and retail investors.
2. Addressing barriers to bond issuance and retail investor access
The Market Abuse Regulation should be better tailored to bond issuers, reflecting the specific features and market dynamics of debt instruments. Strengthening Europe’s retail bond segment and enhancing the EU’s attractiveness for sovereign issuance should also be important priorities.
3. Supporting SME scale-up and transition to public markets
Continued targeted regulatory relief can help SMEs grow towards public markets. EU initiatives for SMEs and scale-ups should recognise the role of listed companies in driving competitiveness, while additional measures could help bridge the gap between private and public funding and position listings as a complementary financing option.
Explore the full discussion paper and FESE’s suggested actions.