Germany’s finance and justice ministers submitted a plan on June 29 to make the country’s financial markets more appealing to investors and increase the availability of capital for growth companies and start-ups.
The plan included provisions to decrease the minimum capital requirement for an IPO to 1 million euros $1.05 million) from 1.25 million currently, and to boost the tax-free allowance for employee share ownership from 1,440 euros to 5,000 euros.
Finance Minister Christian Lindner told a news conference:
“Securities are not something for millionaires. Securities are something for millions (of people). We want to make Germany the leading location for start-ups and growth companies. That is why we are improving access to the capital market and making it easier to raise equity capital.”
Justice Minister Marco Buschmann said the legal framework for share ownership should be digitalized, as well, because too much is still determined by written documents and there is still an almost “erotic relationship with paper” in Germany.
Buy Bitcoin NowThe plans would also seek to better conditions for SPACs, or special purpose acquisition companies. The vehicles obtain funds in an initial public offering (IPO), put it in a trust, and then strive to merge with a private company and take it public.
The ministers want the plan to come into effect by autumn next year.
($1 = 0.9520 euros)
