LONDON, Feb 1 (Reuters) - The European Union has so far only been able to reach a partial deal on reforming company listing rules to compete better with New York, as negotiations stumble over the scope and safeguards of multiple share voting structures.
The bloc is trying to boost its capital markets by making listing on its exchanges cheaper and more attractive for startups, helping to raise funds for investment in growth and ease the heavy reliance of companies on bank loans for finance.
A post-Brexit Britain is also reforming its listing rules in similar ways, as it too faces UK companies opting to list in New York.
Multiple voting, a reference to different voting rights, is common in United States, favoured by founders of tech companies in particular, allowing them to continue controlling decision-making even after the company has listed.
Typically the founder's votes carry more weight than those of ordinary shareholders.
EU states have a patchwork of national rules, ranging from a ban to allowing multiple voting rights.
The differences in national regimes create barriers to the free movement of capital within the internal market, the EU's executive European Commission said in its draft Listings Act, whose final version is now being jointly negotiated by EU states and the European Parliament.
"An agreement was not reached on the multiple-vote share structures directive," a paper written by the EU's Belgian presidency said.
EU financial services commissioner Mairead McGuinness said on Thursday that despite only reaching a partial agreement on the Listing Act, "the whole package should be agreed soon".
"This will make it easier and cheaper for companies to get listed and to stay listed - especially smaller companies," McGuinness said, adding that prospectuses for first-time issuers would be shorter and more streamlined.
Secondary offerings by companies already listed would not have to produce a prospectus at all, she said. (Reporting by Huw Jones Editing by Mark Potter)
