Seven European countries match US in startup-friendly laws, report says

 

FILE – Italian Premier Mario Draghi is shown in Rome on July 20, 2022. A long-awaited report on how to rescue Europe’s economy from weak growth and red tape was released last month.

STOCKHOLM —

Seven European countries have changed their laws to increase employee ownership in startups to rival the U.S. in attracting talent and investment, while other countries are lagging, a report by venture capital firm Index Ventures found.

While stock options were integral to Silicon Valley’s success, Europe has been hampered by bureaucracy and by taxing employees too early, among other restrictions.

The European Union needs a coordinated industrial policy, rapid decisions and massive investment if it wants to keep pace with the U.S. and China economically, Mario Draghi said in a long awaited report last month.

Over 500 startup CEOs and founders joined a campaign called "Not Optional" in 2019 to change rules that govern employee ownership — the practice of giving staff options to acquire a slice of the company, as European-based companies compete for talent with U.S. firms.

Germany, France, Portugal and the UK lead European countries in making changes that match or exceed those of the U.S., while Finland, Switzerland, Norway and Sweden got lower ratings in the Index report.

When companies such as Revolut and others go public, that ownership translates into real money for employees, said Martin Mignot, a partner at Index and an investor at fintech Revolut, which is valued at $45 billion.

• 

  Reuters
  

  Reuters is a news agency founded in 1851 and owned by the Thomson Reuters Corporation based in Toronto, Canada. One of the world's largest wire services, it provides financial news as well as international coverage in over 16 languages to more than 1000 newspapers and 750 broadcasters around the globe.

  
  Subscribe

 

By：VOA