EPP Group Proposed Venture Capital Reforms
Lawmakers have finalized a position paper aimed at boosting venture capital funding across the European market.
Updated on Oct. 8, 2026 in Startups
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Members of the EPP group on the ECON committee have proposed significant updates to the European venture capital framework. The policy shift aims to streamline operations for start-ups and scale-ups throughout Europe.
Why it matters
The proposal intends to keep high-growth companies within Europe by facilitating easier access to capital and reducing bureaucratic hurdles. These measures address the need for a more competitive environment for early-stage and growing firms.
The EPP group proposed raising the regulatory threshold for fund managers to €1.5 billion, tripling the current €500 million requirement. The group also advocates for indexing this limit to inflation.
The players
EPP Group
The Group of the European People is the largest political group in the European Parliament.
ECON Committee
The Committee on Economic and Monetary Affairs is responsible for the regulation of financial services within the European Parliament.
European Commission
This is the executive branch of the European Union, responsible for proposing legislation and implementing decisions.
The details
The EPP group's position paper recommends removing national administrative barriers for cross-border fundraising and expanding the variety of permitted financing instruments. Additionally, the plan calls for wider participation in funds from pension funds, insurers, and experienced private investors.
Timeline
EPP group MEPs finalized their venture capital proposals on October 8, 2026.
The European Commission is scheduled to propose a formal EuVECA framework review in 2027.
Market Landscape
These proposals extend the regulatory standards set by the European Venture Capital Funds (EuVECA) framework to better support domestic growth. By adjusting thresholds, the EPP group seeks to recalibrate the investment environment to match global competitiveness levels.
Entrepreneurs and start-up founders in Europe may benefit from improved access to private and institutional investment capital if these reforms are adopted. The changes are designed to simplify the cross-border fundraising process, potentially reducing costs and administrative burdens for businesses.
The takeaway
European policymakers are prioritizing regulatory flexibility to prevent high-growth companies from leaving the region for capital. Investors and business owners should monitor the 2027 framework review, as it will likely determine the future scale of venture funding across the continent.
What happens next
The European Commission is expected to move forward with a formal review of the EuVECA framework in 2027, which will serve as the next major milestone for these policy recommendations.
Further reading
Learn more about the latest developments in the sector on the Startups section.
More information
View the complete EPP group position paper for further details on these proposals.
Source note: This article includes information reported by Agence Europe.
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