Abstract
This Study provides an overview of the development of employee financial participation, in particular employee share ownership, across the EU-28. Against the background of the policy development of the past 30 years, it highlights the growth of financial participation of employees over last decade using the most recent 2013 European Company Survey data which also show employee financial participation’s potential positive impact on employment and productivity. The study analyses a range of policy options in depth and makes recommendations to the Commission in the form of a five-point plan. Most importantly, it proposes the establishment of a Virtual Centre for employee financial participation including an effective tax rate calculator in the short term, the development of a code of conduct in the mid-term, and an optional “Common European Regime on Employee Financial Participation” in the long term. Overcoming the barriers especially to cross-border plans, is particularly important in view of the potential described in this study for EU companies to implement such schemes and benefit from their impact.