The Commission welcomes the political agreement reached today by the European Parliament and Member States on new rules that will further help small and medium-sized enterprises (SMEs) to finance their growth, innovate, and create jobs.

The European Parliament and Council still have to formally approve the rules.

A key element of the Capital Markets Union (CMU) agenda, the new rules willensure that smaller businesses in the EU have access to diversified sources of financing at each stage of their development. In particular, the revised rules will make it cheaper and simpler for SMEs to access public markets through the so-called 'SME Growth Markets', a new category of trading venue dedicated to small issuers.Listing on stock exchanges can give a significant boost to small and medium enterprises, including a reduced dependence on bank funding, a broader investor base, easier access to additional equity capital and debt finance, and a higher public profile and brand recognition.

Commission Vice-President Valdis Dombrovskis, responsible for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union, said: “Given their importance for the EU economy, we need to make sure that SMEs enjoy the best possible financing conditions to grow and innovate. Today's political agreement is an important step in making the rules on SME's access to capital markets fit for that very purpose. These measures will enable SMEs to develop and prosper without being hindered by unnecessary costs and red tape, while preserving a high level of market integrity and investor protection".