EU Competitiveness Panel Backs European Nasdaq Project
BRUSSELS, Belgium (AP) _ A report issued Thursday by a panel advising the EU on competitiveness called for a Europe-wide, screen-based stock market for firms operating in high-tech and other growth industries.
The 13-member panel said a European system similar to the electronic Nasdaq Stock Market in the United States would be ``highly beneficial″ in bringing together entrepreneurs and venture capital.
The report said the European Union has inadequate ``mechanisms for investment in new and expanding small businesses.″
It also welcomed efforts by the Belgium-based European Venture Capital Association and the European Association of Securities Dealers to launch an Nasdaq-type market by the end of this year.
The two industry groups are trying to resolve regulatory and other issues in cooperation with European stock exchanges interested in the project.
They argue that the minimum number of companies needed for a growth company market cannot be found in any one EU country.
Nasdaq, the model for the European project, is said to be ready to provide technical and managerial expertise.
The report said a Europe-wide, screen-based system would generate interest among banks, brokers and investors.
The idea for a pan-European stock market is not accepted by all European exchanges. Some, anxious to keep hold of their business, are looking for ways to revitalize their own secondary markets.