WRITTEN QUESTION E-3069/00

by Herbert Bösch (PSE) to the Commission

(2 October 2000)

Subject: Financial assistance for innovative and job-creating SMEs situation in Austria

In the 1998 Union budget, 150 million were earmarked for an employment initiative. The funds were primarily intended for assisting innovative small and medium-sized enterprises (SMEs).

There are a good many innovative and job-creating SMEs in Austria. As an Austrian MEP, I naturally take a special interest in the situation in Austria. Having regard to my Written Question E-2823/99 of 18 January 2000 to the Commission on financial assistance for innovative and job-creating SMEs and the reply of 27 March 2000 by Mr Solbes on behalf of the Commission,

I therefore ask the Commission:

1. How, in practical terms, was this employment initiative implemented in Austria?

2. Who in Austria received financial assistance?

3. What is the take-up rate for this initiative in Austria?

Answer given by Mr Solbes Mira on behalf of the Commission

(8 December 2000)

1. In accordance with Council Decision 98/347/EC of 19 May 1998 on measures of financial assistance to innovative and job-creating small and medium-sized enterprises (SMEs) the growth and employment initiative(1), the European investment fund (EIF) consulted the Bundesministerium für Wirtschaftliche Angelegenheiten and the Bundesministerium für Finanzen in order to find a suitable SME financial intermediary in Austria. Following this, the EIF began negotiations with Bürges Förderungsbank. The contract between the EIF and Bürges Förderungsbank was signed on 14 December 1998. Under the small and medium sized enterprises (SME) guarantee facility, two programmes of Bürges are covered: the programme for young entrepreneurs and the programme for structural improvement. The Commission also published information in the Official Journal(2).

The Commission information in the Official Journal(3) also included a notice of implementation of the ETF start-up facility. Interested venture capital funds were invited to contact the EIF. Similar information is also available on the EIF web site and in leaflets produced in eleven languages. Several Austrian venture capital funds contacted the EIF. Currently, the proposals of two Austrian venture capital funds are under assessment by the EIF.

The Joint European Venture (JEV) programme is implemented through a network of financial intermediaries (FIs), providing the link between the Commission and the SMEs. Eight Austrian intermediaries (Bank Austria, Bürges Förderungsbank, Creditanstalt, Erste Bank, FGG, Invest Kredit, Österreische Volksbanken, Raiffeisen Zentralbank) have signed a framework agreement with the Commission.

2. Last available figures showed 1947 Austrian SMEs benefiting from a guarantee under the SME Guarantee facility, corresponding to 188 million loans. 93 % of such SMEs are small companies with 0-10 employees and 75 % of them were established between 1998 and 2000.

The ETF Start-up facility is still at an early stage of its investment phase. Already 48,1million, i.e. 44 % of the Community budgetary allocation for the first two years, has been committed by the EIF to nine venture capital funds, covering seven Member States. Austrian venture capital funds have not yet signed ETF start-up agreements with the EIF. However, as mentioned above, the proposals of two Austrian funds are under assessment by the EIF.

Under the JEV Programme, four joint venture projects that include Austrian SMEs have been approved by the Community. The partners of the Austrian companies are from Belgium, Spain(4), and Italy. The four planned joint ventures are in the sectors of transport, manufacturing, environmental services and information technology services. According to declarations made by the applicants, the total amount of the foreseen investments is estimated at 1,5 million, while 21 new jobs should be created.

3. Last available figures show that the average utilisation rate of the SME Guarantee facility by Bürges Förderungsbank was 70,6 %.

In addition to the growth and employment initiative the Commission has launched in November 1998, under the multiannual programme for SMEs (1997-2000), the new seed capital programme CREA. So far 12 contracts have been signed. Innovationsagentur GmbH has received a subsidy of 500 000 for activities in the very risky seed capital market in order to support the creation of innovative growth oriented businesses.

(1) OJ L 155, 29.5.1998.

(2) OJ C 302, 1.10.1998.

(3) OJ C 302, 1.10.1998.

(4) OJ C 302, 1.10.1998.