Germany, France aim to keep fast-growing start-ups in Europe

Germany and France are seeking to keep fast-growing start-ups in Europe and preempt them from moving to the United States.

The aim is to create better conditions for new companies, said German Finance Minister Lars Klingbeil at an event in Berlin that was also attended by his French counterpart Roland Lescure.

Successful start-ups must have access to sufficient capital and be able to grow within the European Union, the largest single market in the world, he added.

"But the truth is that we are still falling far short of our potential," argued Klingbeil, who also serves as vice chancellor.

Europe has a strong "start-up ecosystem," but too few of its companies become world leaders, the minister said. "And that is exactly what we want and need to change."

The goal is for growing, innovative companies from the EU to become global champions. To achieve this, financing gaps for innovative start-ups must be closed, Klingbeil said.

An expert report compiled by former German finance minister Jörg Kukies and former French central bank governor Christian Noyer proposed concrete measures, including reforming pension systems to make more capital available for innovation and creating a uniform EU-wide corporate legal structure.