To achieve its goals, the Exchange says it will seek the support and commitment of the investment community in the other major European financial centres, developing a network of links with investors, advisors, intermediaries as well as the issuers themselves in markets across Europe.

The announcement coincided with the publication today of independent research, conducted by Oxford Analytica, which estimates that the economic benefit of a truly pan-European market for SMEs would be in the range of a 0.3 to 0.6% uplift in EU GDP.

Speaking at a UK Presidency and EU Commission Risk Capital Summit in London, Chris Gibson-Smith, the Exchange’s chairman, says: "We believe AIM’s destiny is to provide Europe with its growth market, building sound foundations for enterprise and growth across Europe, stimulating new economic activity and reducing the cost of capital in the European economy."

He says local nominated advisers across Europe will act as a pipeline for companies coming to AIM, and local member firms will provide liquidity, ongoing research and local distribution to investors.

Since its launch in 1995, over 2000 companies have chosen to join AIM, and have raised a total of almost £20 billion (€29 billion). AIM now has a total of 1318 quoted companies, including over 200 from overseas, and a total market value of over £50 billion (€73 billion). The total value of shares traded on AIM in August 2005 was £3.41 billion (€4.94 billion), up 245% on the same month last year.

On 20 September 2005, SQS Software Systems AG. became the first German company to have its primary quotation on AIM. In addition there are a further two companies with secondary quotations on AIM from Germany.

AIM's success contrasts with Germany's Neuer Markt, which closed in 2002 in the wake of the dot-com share meltdown.

Also joining AIM today is an Italian company, Acta, which is raising an estimated £6.7 million (€9.7 million) on admission, and has an estimated market capitalisation of £44.8 million (€64.96 million).