WRITTEN QUESTION E-1719/02

by André Brie (GUE/NGL) to the Commission

(13 June 2002)

Subject: Funding granted to the five new German Länder under the (three) financial instruments for SMEs

The 1988 Growth and Employment Initiative included the creation of three financial instruments for SMEs: the SME guarantee facility, the ETF start-up facility and the Joint European Venture (JEV). Can the Commission indicate the amount of funding granted since their creation to the following German Länder:

- Mecklenburg-Western Pomerania,

- Brandenburg,

- Berlin,

- Saxony-Anhalt,

- Thuringia,

- Saxony?

Can the Commission break the figures down according to financial instrument and Land and, if possible, indicate the percentage difference compared with the Länder in the former West Germany?

Answer given by Mr Solbes Mira on behalf of the Commission

(19 August 2002)

Under the SME guarantee facility, small and medium-sized businesses in the new Länder and Berlin have obtained some 4 100 loans, equivalent to 21,6 % of all loans granted to small and medium-sized

businesses in Germany. The total amount of all guaranteed loans for such businesses in the new Länder comes to more than EUR 125 million (20,4 % of the EUR 615 million in loans for the whole of Germany).

The amount granted in guarantees for Germany comes to EUR 485 million, of which EUR 100,3 million, or 21 %, has benefited the new Länder and Berlin. Of the EUR 485 million, EUR 245,5 million is covered by counter-guarantees from the European Investment Fund (EIF). As at 31 March 2002, EUR 236,4 million of this amount was for the Deutsche Ausgleichsbank (50 % counter-guarantees from the EIF relating to a guarantee amount of EUR 472,9 million and a loan amount of EUR 591,1 million(1)) and EUR 9 million for the Kreditanstalt für Wiederaufbau (75 % counter-guarantees from the EIF relating to a guarantee amount of EUR 12 million and a loan amount of EUR 24 million(2)).

Details of the breakdown for the individual Länder can be found in the tables sent direct to the Honourable Member and the Secretariat of the European Parliament.

Under the ETF start-up facility, investments have been made in three venture capital funds that have provided resources for start-up capital and invest primarily in Germany. Of these three funds, one is fully invested. A Community participation in this fund was approved at the end of 1998. For the second fund, whose first funding round was completed in mid-2000, around half of the approved resources have so far been called. The participation in the third fund was approved in mid-May 2002; the funding round has not yet been completed. Meaningful data allowing a comparison in terms of percentages between the old and the new Länder are available for only one fund.

This fund has called EUR 8,8 million of Community resources (22,4 % of the total capital of EUR 39 million) and invested in 27 portfolio companies, 25 of which are based in Germany and two in Switzerland.

Of the 25 companies, three (12 %) have their head office in the Länder mentioned by the Honourable Member (two in Berlin, one in Saxony). These three companies have received funds from the venture capital fund worth EUR 1,3 million in total.

The Joint European Venture (JEV) programme supports the creation of transnational joint ventures between SMEs in the Member States of the EU and the European Economic Area. The Community contribution is designed to cover expenses linked to setting up the joint venture (facility to co-finance preparatory measures and investments).

The JEV also supports events to foster cooperation between SMEs with a view to setting up joint ventures and to inform SMEs about the JEV programme (facility for events promoting the programme).

Since the start of the JEV programme, EUR 188 750 has been made available for applicants from the new Länder and Berlin. These funds are paid out in instalments as the projects progress. Tables showing co-financing of preparatory measures and investments and events promoting the programme are being sent direct to the Honourable Member and the Secretariat of the European Parliament.

(1) The Deutsche Ausgleichsbank grants a release from liability for 80 % of the loan. This partial release from liability is covered by a 50 % guarantee from the European Investment Fund.

(2) The Kreditanstalt für Wiederaufbau grants a 50 % release from liability, which is covered by a 75 % guarantee from the European Investment Fund.