In this context the key structural reform is advancing with the Capital Markets Union project, which should help deepen markets in Europe for early stage venture capital, as well creating new opportunities for market financing – such as private placements – for more mature firms.
Framework conditions matter here as well: a new ECB study finds, for example, that the probability to obtain credit is up to 40% higher in countries with a better legal system. 17 Fourth, by improving human capital, especially in the area of digital skills.