# C_2010079EN.01007101.xml

| 27.3.2010 | EN | Official Journal of the European Union | C 79/71 |
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27.3.2010

EN

Official Journal of the European Union

C 79/71

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Opinion of the Committee of the Regions on ‘Progress Microfinance Facility’

(2010/C 79/12)

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

The Need for Action

| 1. | Supports the immediate action of the Commission and the EIB in ensuring that the EU's resources are used effectively to help businesses in this period of constrained liquidity and emphasises that the recent financial crisis has led to a credit crunch for Small and Medium-sized Enterprises (SMEs) and micro-enterprises and that this both worsens the economic downturn and hampers any subsequent recovery; |
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1.

Supports the immediate action of the Commission and the EIB in ensuring that the EU's resources are used effectively to help businesses in this period of constrained liquidity and emphasises that the recent financial crisis has led to a credit crunch for Small and Medium-sized Enterprises (SMEs) and micro-enterprises and that this both worsens the economic downturn and hampers any subsequent recovery;

| 2. | Acknowledges that the Financial Perspectives 2007-2013 constrain the possibility for the Commission to allocate new funding to the proposed new ‘Progress’ Microfinance Facility; |
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2.

Acknowledges that the Financial Perspectives 2007-2013 constrain the possibility for the Commission to allocate new funding to the proposed new ‘Progress’ Microfinance Facility;

| 3. | Expresses concern that the reallocation of EUR 100 m from the PROGRESS programme to the new ‘Progress’ Microfinance Facility may compromise the objectives, impact and effectiveness of that Programme and calls on the Commission to consider other appropriate funding options for implementation of the Facility; |
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3.

Expresses concern that the reallocation of EUR 100 m from the PROGRESS programme to the new ‘Progress’ Microfinance Facility may compromise the objectives, impact and effectiveness of that Programme and calls on the Commission to consider other appropriate funding options for implementation of the Facility;

| 4. | Draws the Commission's attention to the fact that the proposed EUR 100 m ‘Progress’ Microfinance Facility is unlikely to be sufficient to provide the EUR 500 m in additional funds needed in order to alleviate current lending constraints, boost micro-finance provision and meet the current levels of demand; |
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4.

Draws the Commission's attention to the fact that the proposed EUR 100 m ‘Progress’ Microfinance Facility is unlikely to be sufficient to provide the EUR 500 m in additional funds needed in order to alleviate current lending constraints, boost micro-finance provision and meet the current levels of demand;

| 5. | Welcomes the ‘Progress’ Microfinance Facility being consistent with the principle of subsidiarity and thus, complementary to the provision of micro-credit facilities by Member States or local and regional authorities; |
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5.

Welcomes the ‘Progress’ Microfinance Facility being consistent with the principle of subsidiarity and thus, complementary to the provision of micro-credit facilities by Member States or local and regional authorities;

| 6. | Points out that more than 90 % of EU enterprises are micro-enterprises and that the greatest barrier to innovation for those enterprises results from restricted access to micro-credit; |
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6.

Points out that more than 90 % of EU enterprises are micro-enterprises and that the greatest barrier to innovation for those enterprises results from restricted access to micro-credit;

| 7. | Concurs that the majority of micro-credit to disadvantaged persons in the EU is provided by non-commercial micro-finance institutions and that these providers require further support in order to meet the current levels of demand; |
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7.

Concurs that the majority of micro-credit to disadvantaged persons in the EU is provided by non-commercial micro-finance institutions and that these providers require further support in order to meet the current levels of demand;

| 8. | Believes that the Commission's efforts to develop micro-credit in the EU will prove to be a useful tool to enable those excluded from the conventional credit market to start up new enterprises and support employment creation; |
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8.

Believes that the Commission's efforts to develop micro-credit in the EU will prove to be a useful tool to enable those excluded from the conventional credit market to start up new enterprises and support employment creation;

| 9. | Regrets that the role of and impact on local and regional authorities is not fully taken into consideration by the ex-ante evaluation undertaken by the Commission. |
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9.

Regrets that the role of and impact on local and regional authorities is not fully taken into consideration by the ex-ante evaluation undertaken by the Commission.

Focus on Delivery

| 10. | Calls on the Commission to target innovative micro-enterprises, especially knowledge intensive ones to boost innovation and productivity in the EU; |
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10.

Calls on the Commission to target innovative micro-enterprises, especially knowledge intensive ones to boost innovation and productivity in the EU;

| 11. | Calls on the Commission to streamline existing EU initiatives and to clarify the coherence between the new ‘Progress’ Microfinance Facility and other EU financial instruments, especially PROGRESS, ESF, JASMINE, JEREMIE and CIP (1); |
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11.

Calls on the Commission to streamline existing EU initiatives and to clarify the coherence between the new ‘Progress’ Microfinance Facility and other EU financial instruments, especially PROGRESS, ESF, JASMINE, JEREMIE and CIP (1);

1

| 12. | Recommends that the Commission more accurately differentiates between the specific target groups and considers the unemployed and disadvantaged persons, including the young, women, older people and minority ethnic communities as target groups and gives these groups a specific and appropriate position in programmes and initiatives related to micro-credits; |
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12.

Recommends that the Commission more accurately differentiates between the specific target groups and considers the unemployed and disadvantaged persons, including the young, women, older people and minority ethnic communities as target groups and gives these groups a specific and appropriate position in programmes and initiatives related to micro-credits;

| 13. | Calls on the Commission to emphasise the importance of wider business support measures in addition to financial provision for business start-ups and existing businesses. Providing finance for new and existing businesses should be complemented with active business support mechanisms such as mentoring, training, coaching and capacity building, in addition to interest-rate support from the ESF programme, to encourage sustainable business growth and to ensure business failure rates decrease; |
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13.

Calls on the Commission to emphasise the importance of wider business support measures in addition to financial provision for business start-ups and existing businesses. Providing finance for new and existing businesses should be complemented with active business support mechanisms such as mentoring, training, coaching and capacity building, in addition to interest-rate support from the ESF programme, to encourage sustainable business growth and to ensure business failure rates decrease;

| 14. | Notes that conditions for the provision of and the demand for micro-credit differ greatly across the EU and calls on the Commission to ensure that micro-credit is equally available to areas not benefiting from structural funds as pockets of deprivation and disadvantage may exist even in prosperous areas; |
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14.

Notes that conditions for the provision of and the demand for micro-credit differ greatly across the EU and calls on the Commission to ensure that micro-credit is equally available to areas not benefiting from structural funds as pockets of deprivation and disadvantage may exist even in prosperous areas;

| 15. | Reminds the Commission, Member States, local and regional partners that the EUR 100m Microfinance Facility should be seen in context against other programmes and initiatives. Specifically, the Facility's limited resources will be accessible to all 27 Member States over the next four years. Consequently, the funds should be allocated against specific criteria that deliver maximum impact; |
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15.

Reminds the Commission, Member States, local and regional partners that the EUR 100m Microfinance Facility should be seen in context against other programmes and initiatives. Specifically, the Facility's limited resources will be accessible to all 27 Member States over the next four years. Consequently, the funds should be allocated against specific criteria that deliver maximum impact;

| 16. | Recalls the Opinion of the Committee of the Regions on the ‘European Recovery Plan and the Role of Local and Regional Authorities’ (CdR 12/2009) that requested the Commission to ‘submit a proposal for rules on the granting of micro-credit within the EU ... [and] establish basic parameters for awarding micro-credit’. |
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16.

Recalls the Opinion of the Committee of the Regions on the ‘European Recovery Plan and the Role of Local and Regional Authorities’ (CdR 12/2009) that requested the Commission to ‘submit a proposal for rules on the granting of micro-credit within the EU ... [and] establish basic parameters for awarding micro-credit’.

submit a proposal for rules on the granting of micro-credit within the EU ... [and] establish basic parameters for awarding micro-credit

Communication

| 17. | Reminds the Commission and the EIB Group that the success of the Facility is dependent upon partners, financial institutions and potential beneficiaries being fully aware of the scheme; |
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17.

Reminds the Commission and the EIB Group that the success of the Facility is dependent upon partners, financial institutions and potential beneficiaries being fully aware of the scheme;

| 18. | Insists that the Commission and the EIB Group be proactive in communicating their role and the methods of accessing funding under the different programmes, in partnership with local and regional authorities; |
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18.

Insists that the Commission and the EIB Group be proactive in communicating their role and the methods of accessing funding under the different programmes, in partnership with local and regional authorities;

| 19. | Calls on the Commission and EIB Group to clarify the added value of the ‘Progress’ Microfinance Facility and its complementarities to existing business support initiatives at the European, national, regional and local levels; |
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19.

Calls on the Commission and EIB Group to clarify the added value of the ‘Progress’ Microfinance Facility and its complementarities to existing business support initiatives at the European, national, regional and local levels;

| 20. | Emphasises that the Committee has previously called upon the Commission and the EIB group to be more proactive in communicating the role, added value and opportunities offered by other business support programmes, i.e. JEREMIE, CIP (see the opinion on a Small Business Act for Europe, CdR 2008/246). |
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20.

Emphasises that the Committee has previously called upon the Commission and the EIB group to be more proactive in communicating the role, added value and opportunities offered by other business support programmes, i.e. JEREMIE, CIP (see the opinion on a Small Business Act for Europe, CdR 2008/246).

Co-ordination of Delivery

| 21. | Reminds the Commission and EIB Group that the Microfinance Facility will be more effective if co-ordinated and implemented alongside the existing European financial instruments and local and regional programmes within Member States; |
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21.

Reminds the Commission and EIB Group that the Microfinance Facility will be more effective if co-ordinated and implemented alongside the existing European financial instruments and local and regional programmes within Member States;

| 22. | Recalls the Opinion of the Committee of the Regions on 'The Lisbon Growth and Jobs Strategy' (CdR 245/2008) that reiterated the need for ‘co-ordination between Structural Funds and other relevant European programmes... to maximise European added value and involve regional and local authorities’; |
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22.

Recalls the Opinion of the Committee of the Regions on 'The Lisbon Growth and Jobs Strategy' (CdR 245/2008) that reiterated the need for ‘co-ordination between Structural Funds and other relevant European programmes... to maximise European added value and involve regional and local authorities’;

co-ordination between Structural Funds and other relevant European programmes... to maximise European added value and involve regional and local authorities

| 23. | Suggests that the Commission builds upon the flexibility of the Facility being delivered through non-financial institutions by, where appropriate, working with local and regional authorities as microfinance providers; |
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23.

Suggests that the Commission builds upon the flexibility of the Facility being delivered through non-financial institutions by, where appropriate, working with local and regional authorities as microfinance providers;

| 24. | Calls on the Commission, Member States, local and regional authorities and those bodies entrusted with implementing the Facility to support potential beneficiaries in applying for the loan funds, to minimise the bureaucracy involved in the application, processing and drawdown of funds and to offer further support to reduce the bureaucracy resulting from receipt of these funds. |
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24.

Calls on the Commission, Member States, local and regional authorities and those bodies entrusted with implementing the Facility to support potential beneficiaries in applying for the loan funds, to minimise the bureaucracy involved in the application, processing and drawdown of funds and to offer further support to reduce the bureaucracy resulting from receipt of these funds.

Evaluation and Monitoring

| 25. | Proposes that the Commission should carry out interim and final evaluations at its own initiative, in close cooperation with international financial institutions, and in consultation with local and regional authorities and final beneficiaries. The final evaluation shall, in particular, examine the extent to which the Facility as a whole has achieved its objectives and complemented other existing EU financial instruments e.g. PROGRESS, ESF, JASMINE, JEREMIE and CIP. The final evaluation should also include an analysis of the distribution of funds across the EU 27; |
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25.

Proposes that the Commission should carry out interim and final evaluations at its own initiative, in close cooperation with international financial institutions, and in consultation with local and regional authorities and final beneficiaries. The final evaluation shall, in particular, examine the extent to which the Facility as a whole has achieved its objectives and complemented other existing EU financial instruments e.g. PROGRESS, ESF, JASMINE, JEREMIE and CIP. The final evaluation should also include an analysis of the distribution of funds across the EU 27;

| 26. | Proposes that while the Microfinance Facility is a temporary measure within the current budgetary framework, if it proves successful the Commission and the EIB should consider continuing the programme beyond 2013. |
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26.

Proposes that while the Microfinance Facility is a temporary measure within the current budgetary framework, if it proves successful the Commission and the EIB should consider continuing the programme beyond 2013.

II.   RECOMMENDATIONS FOR AMENDMENTS

Amendment 1

Article 2 of COM(2009) 333

| Text proposed by the European Commission | Committee of the Regions amendment |
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| 1. | The Facility shall provide Community resources to increase access to micro-credits for:






  (a) | persons who have lost or are at risk of losing their job and want to start their own micro-enterprise, including self-employment; |

Text proposed by the European Commission

Committee of the Regions amendment

1.

The Facility shall provide Community resources to increase access to micro-credits for:

(a)

persons who have lost or are at risk of losing their job and want to start their own micro-enterprise, including self-employment;

| (b) | disadvantaged persons, including the young, who want to start or further develop their own micro-enterprise, including self-employment; |
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(b)

disadvantaged persons, including the young, who want to start or further develop their own micro-enterprise, including self-employment;

| (c) | micro-enterprises in the social economy which employ persons who have lost their job or which employ disadvantaged persons, including the young. |
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(c)

micro-enterprises in the social economy which employ persons who have lost their job or which employ disadvantaged persons, including the young.

| 1. | The Facility shall provide Community resources to access to micro-credits for: | |
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1.

The Facility shall provide Community resources to access to micro-credits for:

(b)

| | |
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| (b) | disadvantaged persons, including the young, , who want to start or further develop their own micro-enterprise, including self-employment; |
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disadvantaged persons, including the young, , who want to start or further develop their own micro-enterprise, including self-employment;

| (c) | micro-enterprises in the social economy which employ persons who have lost their job or which employ disadvantaged persons . . |
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(c)

micro-enterprises in the social economy which employ persons who have lost their job or which employ disadvantaged persons . .

Reason

| (i) | There is little common definition and understanding of the term ‘at risk of losing their job’. Therefore it is necessary to reference the definition given in the recently amended EC Regulation establishing the European Globalisation Adjustment Fund No 1927/2006. |
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(i)

There is little common definition and understanding of the term ‘at risk of losing their job’. Therefore it is necessary to reference the definition given in the recently amended EC Regulation establishing the European Globalisation Adjustment Fund No 1927/2006.

| ii) | There are a number of disadvantaged groups in addition to the ‘young’ that should be specifically mentioned. |
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ii)

There are a number of disadvantaged groups in addition to the ‘young’ that should be specifically mentioned.

| iii) | The reference to the ‘young’ is deleted from paragraph (c) as disadvantaged groups are already defined under paragraph (b). |
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iii)

The reference to the ‘young’ is deleted from paragraph (c) as disadvantaged groups are already defined under paragraph (b).

Amendment 2

Article 4 of COM(2009) 333

| Text proposed by the European Commission | Committee of the Regions amendment |
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| 1. | The Facility shall be implemented by using the following types of actions, as appropriate:






  (a) | guarantees and risk-sharing instruments; |

Text proposed by the European Commission

Committee of the Regions amendment

1.

The Facility shall be implemented by using the following types of actions, as appropriate:

(a)

guarantees and risk-sharing instruments;

| (b) | equity instruments; |
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(b)

equity instruments;

| (c) | debt instruments; |
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(c)

debt instruments;

| (d) | support measures, such as communication activities, monitoring, control, audit and evaluation which are directly necessary for the effective and efficient implementation of this Decision and for the achievement of its objectives. |
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(d)

support measures, such as communication activities, monitoring, control, audit and evaluation which are directly necessary for the effective and efficient implementation of this Decision and for the achievement of its objectives.

| 2. | The Facility shall be open to public and private bodies established in the Member States which provide microfinance to persons and micro-enterprises in the Member States. |
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2.

The Facility shall be open to public and private bodies established in the Member States which provide microfinance to persons and micro-enterprises in the Member States.

| 1. | The Facility shall be implemented by using the following types of actions, as appropriate:






  (a) | guarantees and risk-sharing instruments; |
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1.

The Facility shall be implemented by using the following types of actions, as appropriate:

(a)

guarantees and risk-sharing instruments;

| (b) | equity instruments; |
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(b)

equity instruments;

| (c) | debt instruments; |
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(c)

debt instruments;

| (d) | support measures, such as communication activities, monitoring, control, audit and evaluation which are directly necessary for the effective and efficient implementation of this Decision and for the achievement of its objectives. |
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(d)

support measures, such as communication activities, monitoring, control, audit and evaluation which are directly necessary for the effective and efficient implementation of this Decision and for the achievement of its objectives.

| 2. | The Facility shall be open to public and private bodies established in the Member States which provide microfinance to persons and micro-enterprises in the Member States. |
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2.

The Facility shall be open to public and private bodies established in the Member States which provide microfinance to persons and micro-enterprises in the Member States.

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Reason

| (i) | Given the limited funds available and to ensure the benefits of the Facility are maximised, it is important that a clear eligibility criteria is established and that this criteria is applied consistently across all 27 Member States. |
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(i)

Given the limited funds available and to ensure the benefits of the Facility are maximised, it is important that a clear eligibility criteria is established and that this criteria is applied consistently across all 27 Member States.

| ii) | Clear eligibility criteria would support effective communication and support differentiation between, and co-ordination with, other programmes. |
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ii)

Clear eligibility criteria would support effective communication and support differentiation between, and co-ordination with, other programmes.

Amendment 3

Article 5 of COM(2009) 333

| Text proposed by the European Commission | Committee of the Regions amendment |
| --- | --- |
| 1. | The Commission shall manage the Facility in accordance with Council Regulation (EC, Euratom) No 1605/2002. |

Text proposed by the European Commission

Committee of the Regions amendment

1.

The Commission shall manage the Facility in accordance with Council Regulation (EC, Euratom) No 1605/2002.

| 2. | To implement the actions referred to in Article 4(1), except for the support measures referred to in point (d) of Article 4(1), the Commission shall conclude agreements with international financial institutions, in particular with the European Investment Bank (EIB) and the European Investment Fund (EIF), in accordance with Article 53d of Council Regulation (EC, Euratom) No 1605/2002 and Article 43 of Commission Regulation (EC, Euratom) No 2342/2002. These agreements shall contain detailed provisions for the implementation of the tasks entrusted to them, including the necessity to ensure additionality with national schemes. |
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2.

To implement the actions referred to in Article 4(1), except for the support measures referred to in point (d) of Article 4(1), the Commission shall conclude agreements with international financial institutions, in particular with the European Investment Bank (EIB) and the European Investment Fund (EIF), in accordance with Article 53d of Council Regulation (EC, Euratom) No 1605/2002 and Article 43 of Commission Regulation (EC, Euratom) No 2342/2002. These agreements shall contain detailed provisions for the implementation of the tasks entrusted to them, including the necessity to ensure additionality with national schemes.

| 3. | Proceeds, including dividends and reimbursements, received by the international financial institutions referred to in paragraph 2 may be re-invested by them into actions referred to under Article 4(1) (a), (b) and (c) for a period of six years after the starting date of the Facility. Upon closure of the Facility, the remaining balance due to the European Communities shall be repaid to the general budget of the European Communities. |
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3.

Proceeds, including dividends and reimbursements, received by the international financial institutions referred to in paragraph 2 may be re-invested by them into actions referred to under Article 4(1) (a), (b) and (c) for a period of six years after the starting date of the Facility. Upon closure of the Facility, the remaining balance due to the European Communities shall be repaid to the general budget of the European Communities.

| 4. | The international financial institutions referred to in paragraph 2 of this Article shall conclude written agreements with the public and private providers of microfinance referred to in Article 4 (2) laying down their obligations to use the resources made available from the Facility in accordance with the objectives set out in Article 2 and to provide information for the establishment of the annual reports referred to in Article 8 (1). |
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4.

The international financial institutions referred to in paragraph 2 of this Article shall conclude written agreements with the public and private providers of microfinance referred to in Article 4 (2) laying down their obligations to use the resources made available from the Facility in accordance with the objectives set out in Article 2 and to provide information for the establishment of the annual reports referred to in Article 8 (1).

| 5. | The budget for support measures referred to in Article 4 (1) (d) shall be managed by the Commission |
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5.

The budget for support measures referred to in Article 4 (1) (d) shall be managed by the Commission

| 1. | The Commission shall manage the Facility in accordance with Council Regulation (EC, Euratom) No 1605/2002. |
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1.

The Commission shall manage the Facility in accordance with Council Regulation (EC, Euratom) No 1605/2002.

| 2. | To implement the actions referred to in Article 4(1), except for the support measures referred to in point (d) of Article 4(1), the Commission shall conclude agreements with international financial institutions, in particular with the European Investment Bank (EIB) and the European Investment Fund (EIF), in accordance with Article 53d of Council Regulation (EC, Euratom) No 1605/2002 and Article 43 of Commission Regulation (EC, Euratom) No 2342/2002. These agreements shall contain detailed provisions for the implementation of the tasks entrusted to them, including the necessity to ensure additionality with national, schemes. |
| --- | --- |

2.

To implement the actions referred to in Article 4(1), except for the support measures referred to in point (d) of Article 4(1), the Commission shall conclude agreements with international financial institutions, in particular with the European Investment Bank (EIB) and the European Investment Fund (EIF), in accordance with Article 53d of Council Regulation (EC, Euratom) No 1605/2002 and Article 43 of Commission Regulation (EC, Euratom) No 2342/2002. These agreements shall contain detailed provisions for the implementation of the tasks entrusted to them, including the necessity to ensure additionality with national, schemes.

| 3. | Proceeds, including dividends and reimbursements, received by the international financial institutions referred to in paragraph 2 may be re-invested by them into actions referred to under Article 4(1) (a), (b) and (c) for a period of six years after the starting date of the Facility. Upon closure of the Facility, the remaining balance due to the European Communities shall be repaid to the general budget of the European Communities. |
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3.

Proceeds, including dividends and reimbursements, received by the international financial institutions referred to in paragraph 2 may be re-invested by them into actions referred to under Article 4(1) (a), (b) and (c) for a period of six years after the starting date of the Facility. Upon closure of the Facility, the remaining balance due to the European Communities shall be repaid to the general budget of the European Communities.

| 4. | The international financial institutions referred to in paragraph 2 of this Article shall conclude written agreements with the public and private providers of microfinance referred to in Article 4 (2) laying down their obligations to use the resources made available from the Facility in accordance with the objectives set out in Article 2 and to provide information for the establishment of the annual reports referred to in Article 8 (1). |
| --- | --- |

4.

The international financial institutions referred to in paragraph 2 of this Article shall conclude written agreements with the public and private providers of microfinance referred to in Article 4 (2) laying down their obligations to use the resources made available from the Facility in accordance with the objectives set out in Article 2 and to provide information for the establishment of the annual reports referred to in Article 8 (1).

| 5. | The budget for support measures referred to in Article 4 (1) (d) shall be managed by the Commission. |
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5.

The budget for support measures referred to in Article 4 (1) (d) shall be managed by the Commission.

Reason

It is important to emphasise that the ‘Progress’ Microfinance Facility will be more effective if co-ordinated with national, regional and local schemes.

Amendment 4

Article 9 of COM(2009) 333

| Text proposed by the European Commission | Committee of the Regions amendment |
| --- | --- |
| 1. | The Commission shall carry out interim and final evaluations at its own initiative and in close cooperation with the international financial institutions referred to in Article 5(2). The interim evaluation shall be completed four years after the start of the Facility and the final evaluation at the latest one year after the end of the mandate(s) given to the international financial institutions referred to in Article 5(2). The final evaluation shall, in particular, examine the extent to which the Facility as a whole has achieved its objectives. |

Text proposed by the European Commission

Committee of the Regions amendment

1.

The Commission shall carry out interim and final evaluations at its own initiative and in close cooperation with the international financial institutions referred to in Article 5(2). The interim evaluation shall be completed four years after the start of the Facility and the final evaluation at the latest one year after the end of the mandate(s) given to the international financial institutions referred to in Article 5(2). The final evaluation shall, in particular, examine the extent to which the Facility as a whole has achieved its objectives.

| 2. | The results of the evaluations will be transmitted, for information, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. |
| --- | --- |

2.

The results of the evaluations will be transmitted, for information, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.

| 1. | The Commission shall carry out interim and final evaluations at its own initiative and in close cooperation with the international financial institutions referred to in Article 5(2), . The interim evaluation shall be completed four years after the start of the Facility and the final evaluation at the latest one year after the end of the mandate(s) given to the international financial institutions referred to in Article 5(2). The final evaluation shall, in particular, examine the extent to which the Facility as a whole has achieved its objectives . |
| --- | --- |

1.

The Commission shall carry out interim and final evaluations at its own initiative and in close cooperation with the international financial institutions referred to in Article 5(2), . The interim evaluation shall be completed four years after the start of the Facility and the final evaluation at the latest one year after the end of the mandate(s) given to the international financial institutions referred to in Article 5(2). The final evaluation shall, in particular, examine the extent to which the Facility as a whole has achieved its objectives .

| 2. | The results of the evaluations will be transmitted, for information, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. |
| --- | --- |

2.

The results of the evaluations will be transmitted, for information, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.

Reason

| (i) | The delivery of the ‘Progress’ Microfinance Facility should be delivered in partnership with local and regional authorities. Consequently, any evaluation should be undertaken in consultation with the local and regional authorities and final beneficiaries as they are ideally placed to advise on the overall impact and effectiveness of the ‘Progress’ Microfinance Facility. |
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(i)

The delivery of the ‘Progress’ Microfinance Facility should be delivered in partnership with local and regional authorities. Consequently, any evaluation should be undertaken in consultation with the local and regional authorities and final beneficiaries as they are ideally placed to advise on the overall impact and effectiveness of the ‘Progress’ Microfinance Facility.

| ii) | The Facility will only be effective if it complements other existing EU financial instruments, therefore the extent to which this has occurred should be part of the evaluation framework. |
| --- | --- |

ii)

The Facility will only be effective if it complements other existing EU financial instruments, therefore the extent to which this has occurred should be part of the evaluation framework.

Brussels, 7 October 2009.

The President of the Committee of the Regions

Luc VAN DEN BRANDE

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(1)  European Community Programme for Employment and Social Solidarity (PROGRESS), European Social Fund (ESF), Joint Action to Support Micro-Finance Institutions in Europe (JASMINE), Joint European Resources for Micro to Medium Enterprises (JEREMIE), Competitiveness and Innovation Framework Programme (CIP).

1

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