The Economic and Monetary Affairs committee of the European Parliament
has adopted a report negotiated by Alfred Sant on a EU Recovery Prospectus
that is part of the European Commission’s Capital Markets Recovery Package.
Alfred Sant is the rapporteur on behalf of the Socialists & Democrats group on
the report on the proposal for a regulation of the European Parliament and of
the Council amending a regulation on the EU Recovery prospectus and
targeted adjustments for financial intermediaries to help the recovery from the
COVID-19 pandemic.
The broader package proposes targeted changes to capital market rules, which
will encourage greater investments in the economy, allow for the rapid re-
capitalisation of companies and increase banks' capacity to finance the
recovery.
Alfred Sant introduced an additional reference to the impact of the Covid-19.
This would ensure that investors are explicitly informed of any related or
aggravating factor that could affect the level of risk of the investment. His
proposal received broad support from several political groups.
The cost of drawing up a prospectus is quite discouraging for issuers seeking to
raise new funds. As financial distress is growing in the context of the pandemic, it was crucial to ensure for issuers already listed that the prospectus would not
be a barrier.
The committee approved all proposals advanced by Alfred Sant. The EU
Recovery Prospectus report was adopted with 45 votes in favour, 5 against and
7 abstentions. It will be voted upon in the plenary session of the European
Parliament in December.
