The announcement comes amid a decline in fintech funding across the region as well as growing competition from the US and China. But according to the EIB’s president, Nadia Calvino, the action plan will ensure that "companies born in Europe, stay in Europe".

The plan was presented to EU finance ministers in Luxembourg as part of an EU plan to develop its capital markets as a destination for innovative startups.

Among the measures included in the plan are an expansion of the European Tech Champions initiative - a fund of funds launched last year that targets European unicorns.

"The Action Plan discussed with ministers will help European innovators scale up their business and contribute to channel savings into productive investments, boost innovation, create jobs and lead Europe toward a more robust growth model, ensuring that European companies born in Europe, stay in Europe," said Calvino.