Crowdfunding in the European Union

Key points:

The EESC considers that:

• crowdfunding with non-financial returns is widespread in the EU. The impact of tax incentives, which vary among the Member States, should be studied,
• European legislation should only cover specific types of financial return crowdfunding, and not donations and other forms of non-profit sponsoring,
• these rules should be based on achieving balance, protecting investors and avoiding excessive regulation,
• the rules should seek to achieve simple administrative procedures, rapid decision procedures and minimum costs, as well as neutrality, transparency and avoidance of unfair practices, with accessible claims procedures,

Crowdfunding should be explicitly recognised in the laws of the Member States as a new form of patronage.

Other relevant EESC opinions:

• An action plan to improve access to finance for SMEs (CESE 1411/2012 - INT/632)
• Financing structures for SMEs in the context of the current financial situation (CESE 1159/2010 - INT/479)
• Capital increase of European Investment Fund (CESE 1436/2014 - INT/739)
• Micro-credit (CESE 1503/2008 - INT/423)
• Finance for business/alternative supply mechanisms (ongoing opinion - ECO/361)
• Long-term financing - follow-up (ongoing opinion - ECO/365)