OWN-INITIATIVE OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE on the role of the European Investment Bank in Regional Development
Date: 1994-02-23
Institutions: European Economic and Social Committee
Subjects: European Investment Bank, regional development, regional policy













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51994IE0225

OWN-INITIATIVE OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE on the role of the European Investment Bank in Regional Development  


Official Journal C 133 , 16/05/1994 P. 0001 





Opinion on the role of the European Investment Bank in Regional Development (94/C 133/01)On 22 November 1993 the Economic and Social Committee, acting under the fourth paragraph of Article 20 of its Rules of Procedure, decided to deliver an Opinion on the role of the European Investment Bank in Regional Development.The Section for Regional Development and Town and Country Planning, which was responsible for preparing the Committee's work on the subject, adopted its Opinion on 18 January 1994. The Rapporteur was Mr E. Muller.At its 313th Plenary Session (meeting of 23 February 1994), the Economic and Social Committee adopted the following Opinion by a majority vote, with one abstention.1.  Introduction 1.1.  On 23 November 1993 the Committee authorized its Section for Regional Development and Town and Country Planning to issue an Own-initiative Opinion based on the Information Report on the European Investment Bank drawn up by the Section.This Report is to be regarded as constituting an integral part of the Opinion. The Opinion draws attention to the important role which the EIB can play in the process of European integration and the successful conclusion of EC policies, in particular regional development policy.1.2.  The Economic and Social Committee does not only have a duty to contribute, as effectively as possible, to ensuring that appropriate information is provided with regard to the role and operation of the EC Institutions. It is also duty-bound to take an interest in and to support improved coordination between EC, national and regional bodies and between the policies carried out at various levels in areas with a bearing - directly or indirectly - on regional development policy. The Committee's initiative will be useful at a time when a variety of new political developments have been agreed upon or are envisaged, namely: the reform of the Structural Funds; the establishment of the Cohesion Fund; the setting-up of the Committee of the Regions; recent developments in regional and structural policy in the Member States; the Treaty on European Union and its impact on economic and monetary union (EMU); the conclusions of the Edinburgh, Copenhagen and Brussels Summits, particularly in respect of the role of the EIB; the establishment of a European Investment Fund; the role which the Committee intends to play in future in the consultation and information fields; structural and regional development in the context of land-use planning and development in the EC in the run-up to the Europe of the 21st century; the establishment of the European Economic Area (EEA); and the applications to join the EC submitted by prospective Member States.Furthermore, intervention by the EIB in support of the development of non-EC countries, as recommended by the Committee, in particular in its Opinion on Latin America (1), is to be regarded as a factor which promotes stability and development and also helps, to a certain extent, to overcome a number of difficulties confronting the Community and its regions.1.3.  The above-mentioned Section Report, which provides a description and appraisal of a number of aspects of the role and operation of the EIB in the context of regional development, gives rise to a number of questions relating to the work and the future development of the EIB. A number of proposals and recommendations should be set out in this regard with a view to enabling this EC financial institution to attain optimum efficiency.2.  The EIB in the new context of European Union 2.1.  In the light of the various developments described in Chapters 3 and 4 of the Report, the present situation of the EIB is influenced to a considerable extent by both the measures arising from the recent Edinburgh, Copenhagen and Brussels Summits and a growing awareness of the possibilities provided by the EIB and the need to improve its interventions.2.2.  In this context mention should be made inter alia of:2.2.1.  The cooperation agreement in respect of the implementation of the financial mechanism for achieving cohesion (the future Cohesion Fund). This agreement, which was signed on 23 September 1993, should be seen as a step towards closer cooperation with a view to achieving greater complementarity between investments financed by the EIB and grants from the EC budget. It is to be hoped that the measures which have been adopted will highlight the need for a more wide-ranging coordination of the work of the various institutions and the need to achieve greater transparency in respect of all the parties involved.2.2.2.  Various views expressed by the Commission, in particular the memo entitled 'Increasing the efficiency of the EC structural policies (1994-1999)', submitted by Mr Bruce Millan, Member of the Commission, to the informal Council of Ministers responsible for regional policy, held on 12 and 13 November 1993.This memo, which contains a number of interesting aspects, points out that 'the results of the efforts made to dovetail loans and grants more smoothly have so far remained disappointing'; the memo goes on to point out that the new Article 198E of the Treaty could facilitate a process of loan programming coordinated with the work of the Structural Funds.2.2.3.  The Council Resolution of 22 November 1993 on strengthening the competitiveness of enterprises, in particular of small and medium-sized enterprises and craft enterprises, and developing employment in the EC (1).In addition to underlining the role of SMEs as vital players in the revival of growth and the creation of jobs, this Resolution calls upon the Commission to promote support for investments in SMEs from the European Investment Fund (EIF) and the EIB, inter alia through the ongoing development of the EIB's programme of global loans. The Resolution also underlines the need to ensure that SMEs benefit from interventions by the EIF and to ensure access for SMEs - and in particular the smallest of such enterprises - to guarantees; it further calls upon the EIB to consider the possible advantages of diversifying the financial intermediaries.The points raised in the above-mentioned Resolution undoubtedly require study, consultations, and action at the various levels.2.2.4.  The agreement on the European Economic Area (EEA) which includes financial machinery making provision for:- EIB loans totalling ECU 1,5 billion, together with interest rate subsidies of 2 percentage points, paid for by the six EFTA States which have joined the EEA, and- grants totalling ECU 500 m. which, under the terms of an agreement between the EC Member States and the EIB, will be awarded by the EIB in consultation with the Commission and the EFTA States and with the aid of an advisory committee.2.2.5.  The Conclusions of the European Council held in Brussels on 10 and 11 December 1993.Within the financial perspectives defined at the Edinburgh Summit and with a view to funding the energy, transport and environment networks and information infrastructures, the Council:- laid down that 'the EIB - as part of its normal activities - and the European Investment Fund will contribute ECU 7 billion per year in the form of loans and guarantees' and- 'called upon the ECOFIN Council, to study together with the Commission and the EIB, procedures which would enable the Community to mobilize up to an additional ECU 8 billion in loans for operators involved in setting up networks'.2.3.  The above-mentioned Section Report, memos and expressions of views point to a number of issues which must be given attention. These issues will be examined in the chapters set out below.3.  Consultation, cooperation, coordination and coherence 3.1.  Procedures for cooperation and consultation with the other EC institutionsA number of improvements should be made in order to bring about more effective mobilization of the financial resources available on the capital market and with a view to achieving the goal of economic and social cohesion highlighted by the ministers attending the Regional Policy Council on 12 and 13 November 1993.3.1.1.  Within the framework of the EIB's relations with the Commission, the need for greater efficiency dictates that the Bank should be involved in a more systematic way in the Commission's work with regard to the Structural Funds.This would make it possible, for example, to limit the occurrence of situations under which a measure deemed eligible under an operational programme to receive financial support from the Commission was, at a later stage, regarded by the EIB as not meeting the qualifying conditions for a loan.The necessary measures should also be taken to extend the machinery for consulting the social partners (Article 4 of the Framework Regulation on the Structural Funds) (1) to include the EIB.3.1.2.  In the light of the experience which the EIB has acquired and put into practice in the field of investment policy and bearing in mind the general development of the Community, consultation of the EIB when new guidelines for various aspects of EC policy are being formulated would be beneficial for all concerned. Such a step would, however, require a degree of change in attitude on the part of the Bank itself, the Commission, the Council and the individual Member States.The Economic and Social Committee, for its part, could consider the advisability of cooperating with the EIB at a particular stage in the consultation process and the procedures to be involved, particularly in view of the fact that the Committee does not usually have the opportunity to consider the work of the EIB and its policies.The Committee is all the keener to remedy this situation in that, by virtue of its membership and role, the Committee is a consultative body which has an overview of all Community policies and, furthermore, it may act as a go-between with socio-economic groups concerned with regional development. In the general context of the role of the Committee and the opportunities for consultation which it can provide, attention is drawn to its recent Opinions on (a) the Community's internal market after 1992 and (b) a strategic programme on the internal market (2).3.1.3.  All the consultation procedures will therefore have to be reviewed in the light of the need to coordinate the increasingly diversified activities of the Bank.A way will have to be found to reconcile and coordinate activities in connection with the Cohesion Fund, the European Investment Fund, the implementation of the EFTA financial machinery and the tasks for which the EIB has always been responsible, against the background of consolidation of economic and social cohesion in the Community. Furthermore, all these measures will have to be coordinated with the work of the Commission in pursuit of the same objectives.3.2.  A higher degree of integration of the EIB in EC regional policy and coordination with other EC policies3.2.1.  Cooperation between the EIB and the various EC Institutions is described in Chapter 3 of the Report.3.2.2.  With a view to the operation of the European Union and the achievement of economic and social cohesion, decisions have recently been taken to create a number of new instruments. These new instruments highlight the need to intensify efforts to find new synergies between, on the one hand, bodies operating in the field of the Structural Funds and, on the other hand, the EIB which, under its mandate, helps to promote investment with a view to achieving EC objectives, i.e. regional policy objectives. Such synergies can only be achieved if they are based on cooperation and coordination machinery which is both well-defined and flexible. There is also a greater need for such synergy in the light of the conclusions of the European Council held recently in Brussels (see point 2.2.5 above).3.2.3.  Does such machinery exist and operate in an appropriate way, bearing in mind policy imperatives ? In the Committee's view such machinery is inadequate.The recommendations and indications set out in various EC documents cannot give rise to any other judgement. Reference may be made here to, inter alia, the above-mentioned memo of 12 and 13 November 1993 in which it is stated that direct association of the EIB in the implementation of Community support frameworks has remained limited; the memo also points out that steps should be taken to coordinate the programming of loans with the work of the Structural Funds and that relations between EC bodies and national partners are hampered by excessive bureaucracy within the Member States.3.2.4.  Whilst recognizing that there is a will to act and the real effort which has been made to bring about cooperation and coordination between the EIB and the other institutions, the Committee nonetheless holds the view that there are shortcomings at all levels; it particularly stresses the need to establish more direct and more transparent channels of consultation, cooperation and coordination at Member State level and on the part of economic operators at national, regional and local level within the Member States.3.2.5.  Two problems arise here: (a) the operation of national and regional monitoring committees and, more generally, (b) ex-ante assessments of projects and ex-post assessments of the results of the projects, in the light of the resources available and the impact of the measures on the various areas and goals of EC policy.With a view to more effectively meeting the need for complementarity and coordination between the various types of investment - which differ as regards both their direct objectives and their scale - consideration could be given to the establishment of a form of 'observatory'. Such an observatory could identify and coordinate the links between resources made available by the EIB, the EC budgets and national budgets and measures taken to achieve an economic and social cohesion which is beneficial to and readily understood by the populations concerned. In the Committee's view this observatory could readily fit in with the existing machinery without giving rise to a new burden of bureaucracy and constituting a new charge on the budget.4.  The EIB and the intermediary bodies 4.1.  Role of the intermediary bodiesCooperation with other banks is a feature of the EIB's work, particularly in regard to global loans which enable the Bank to extend its activities to funding small projects.The financing of small and medium-sized projects is an increasingly important activity for the EIB. For obvious reasons relating to operational efficiency, the EIB cannot however examine and manage such operations itself. For this reason the EIB has, since 1968, been involved in specific cooperation with specialized banks and financial bodies at national, regional and sectoral level; these 'intermediary bodies' act as the EIB's partners in implementing a special procedure for granting loans, the 'global loan' procedure.Under this procedure a line of credit is opened for use by the intermediary body, which is responsible for administering the funds and allocating the sum involved between the projects which have been selected in agreement with the EIB, and which are in accordance with the conditions and objectives established at the time of granting the global loan.4.2.  The criteria for selecting the intermediary bodiesThe criteria employed by the EIB for selecting intermediary bodies to receive loans relate mainly to the intermediary's financial situation and involve an appraisal of its ability to make good use of the loan, its experience, knowledge of the market, and its links with the economic sectors, objectives and regions involved, and whether its portfolio matches the type of investments to be financed.4.3.  It has been observed that such cooperation with financial bodies established in the various Member States is not progressing at an even pace; the level of progress depends upon the requirements involved and the capacity of the banking networks. In those Member States where banks traditionally have more funds at their disposal, there is less need to resort to EIB loans. This may also be the case in regions and states where economic activity is low.4.4.  Cooperation with the financial bodies has increased over the years and the EIB now has some 100 partner organizations throughout the Community.The allocation of neither direct loans nor global loans is determined in advance. The volume of the global loans depends largely on demand which is itself dependent on the capital available on the market and the relative level of interest rates. As regards the volume of funds transferred, the EIB awarded global loans totalling ECU 3,258 m. in 1992; 8 788 loans have been granted on the basis of the global loans currently in operation, with a total value of ECU 4,071 m. Detailed information on the breakdown by country and by sector may be found in the EIB's Annual Report.5.  The intermediary bodies and the management of global loans 5.1.  The intermediary body, which is, legally speaking, the party which contracts the loans from the EIB, has to undertake to use the global loan in accordance with instructions provided by the EIB. It also has to stand surety for the repayment of the loan.The contract concluded in respect of the global loan specifies the amounts, the rate of interest, the duration of the loan and the currency involved. Subsequent loans granted within the framework of the global loan do not necessarily have to be in the currency of the global loan itself. The contract for the global loan also lays down a framework for the allocation of sums by the intermediary body. In practice multidisciplinary teams from the EIB (financial experts, economists, engineers) carry out an on-the-spot assessment of the ability of the intermediary bodies to distribute the loan; the system for monitoring the award of individual loans is selected in the light of this assessment. This monitoring may therefore take a number of different forms, depending upon the experience of the intermediary body and the confidence which the EIB has in that body. The EIB may therefore simply examine the list of applications for financing submitted by the intermediary body or it may decide to vet each individual dossier. On-the-spot visits are carried out when this is deemed necessary. There is also ex-post monitoring after the loan has been awarded to the final beneficiary: this monitoring involves examining the development of the projects which have been funded.5.2.  Individual contracts concluded by the intermediary body with the final beneficiary of the loan must be in accordance with the provisions laid down in the contract for the global loan. The interest rates charged by the intermediary body are, however, set by the intermediary itself; they generally reflect the conditions attached to the EIB loan, plus a margin for management costs and the banking risk borne by the intermediary body. It is the intermediary body which takes out the loan from the EIB and has to repay the loan and the intermediary body will therefore include the cost of the risk factor when calculating the interest rates on individual loans. Although the EIB is unable to stipulate any binding provisions as regards the interest rates to be paid by the final beneficiary of the loan, the question nonetheless arises as to whether and to what extent the interest rate applied may be regarded as a form of competition between the intermediary bodies and may influence the EIB's decision to award a global loan to a particular intermediary.The growing number of financial institutions and banks working in partnership with the EIB undoubtedly encourages competition, thereby helping to bring down the intermediary bodies' margins. The terms on which EIB global loans are made available depend on a number of other factors in addition to those mentioned above; these factors vary from country to country and are bound up with the general level of market interest rates and, where applicable, the provisions governing the coverage of exchange rate risks.In addition to the favourable loan terms which promoters are able to obtain by borrowing from the EIB, special government measures to encourage investment in particular sectors, in the form of financial guarantees, fiscal measures or interest rate subsidies, may also help to make EIB loans an attractive source of finance for the final beneficiary.The use of intermediary bodies may, however, have a number of drawbacks for SMEs. There is a belief that the terms offered under the current system continue to be less favourable than those which could be obtained by direct negotiations with the EIB, as practised by large undertakings and authorities.5.3.  In addition to the problems raised above, a more detailed examination should be made of the terms for guarantees and loan repayment procedures laid down by the intermediary bodies in respect of investors.6.  The intermediary bodies and their role in the new guidelines 6.1.  The temporary loan facility which was adopted at the Edinburgh Summit, subsequently extended at the Copenhagen Summit, and which gives the EIB a greater role in the implementation of EC economic policies, has been extended to SMEs. The Community is to grant interest rate subsidies designed to reduce the interest rates on EIB loans to SMEs in the Community (1).It should be noted that, under its Statute, the EIB cannot grant interest rate subsidies. This does not, however, prevent another EC body from providing such subsidies, funded by the EC budget, for EIB loans.As the EIB loans to SMEs take the form of global loans managed by intermediary bodies, the latter are likely to have a role to play here since, by passing on the interest rate subsidies, they will be in a position to finance that part of the project cost which the EIB is unable to cover.In the Commission's view financial intermediaries will have a major role to play with regard to the interest subsidy mechanism and it intends to ensure, in conjunction with the EIB, that the final beneficiaries of loans receive the full benefit of the Community's interest subsidies.The practical procedures for collaboration with the EIB do not yet appear to have been defined and there are a number of problems in this respect.6.2.  The intermediaries are also affected by the decision to set up a European Investment Fund. This Fund will in fact act as a guarantee fund; it is to provide guarantees in respect of global loans granted to banks for allocation to SMEs.The fact that these global loans are guaranteed by the European Investment Fund should have a bearing on the interest rate charged by the intermediary body. Since these bodies will no longer have to stand surety for the global loan, they should no longer incorporate the cost of the risk element in the interest rates charged to the final beneficiary, and the interest rate will therefore be correspondingly reduced.6.3.  If there is a desire to go further than the introduction of the abovementioned interest subsidies and to align the loan terms applicable to SMEs on the terms applied in respect of major projects and large companies, consideration should be given to the adoption by the EIB of similar financing methods to those employed by a number of investment banks in the EC Member States.Here, too, the actual procedures in respect of the organization and implementation of these new principles have yet to be defined.7.  The EIB and the promotion of investment by SMEs 7.1.  The importance of SMEs for European integration and the internal market has been underlined on a number of occasions; numerous resolutions, declarations and action blueprints demonstrate the close link between SMEs and many EC policies. The pursuit of its policy on SMEs is undoubtedly one of the Community's main goals with a view to promoting economic and social cohesion and regional development. The recent annual report of the European Observatory for SMEs confirms the importance of this economic sector (2).7.2.  The opportunities which SMEs have to develop, or even their very survival, are to a large extent dependent upon the financing terms available to them when they are set up and the terms which may subsequently be offered to them.The Committee has drawn attention in a large number of Opinions (3) to the difficulties which SMEs have in securing financing and access to the capital market. The Committee welcomes the Commission decision to draw up a Communication on the financing problems faced by small and medium-sized enterprises; this Communication will undoubtedly shed light on the difficulties which SMEs have experienced in this field.The conclusions drawn from this Communication - following the consultation procedure in which the Committee is involved - could pinpoint possible EIB action to improve the financial situation of enterprises. This action could take the form of the introduction of a series of different financing arrangements, such as risk capital schemes.7.3.  At present the EIB helps to finance investments by SMEs through funds drawn on its global loans. The EIB's 1993 Annual Report pointed out that out of a total of 8 788 loans made available under the current global loans, 4 782 were awarded to SMEs in assisted areas (total value of the loans: ECU 1 463,1 m.), while 2 529 loans were made available to SMEs outside the assisted areas (total value of the loans: ECU 802,8 m.).The criteria used to identify SMEs are those generally applied at EC level; they cover the number of employees (with the exception of the hotel industry), and net fixed assets. Furthermore, SMEs do not qualify for EIB loans if part of their capital is held by a large company.A more detailed study should be made of the repayment procedures and whether they are flexible enough to meet the specific financial characteristics of the SMEs which are being set up or expanded.Attention is also drawn to the fact that, in addition to financing large infrastructure projects in connection with the trans-European networks, the European Investment Fund (EIF) will also act as a guarantor in respect of the financing of investments by SMEs. The modest level of resources allocated to the EIF is, however, a matter of regret.7.4.  It would undoubtedly be beneficial to improve the systems of 'ex-post' assessments with a view to drawing more accurate conclusions - which would nonetheless still be only be approximate - in regard to the economic justification and the social value of EIB assistance and the value of the current system of allocating loans as part of global loans.7.5.  Leaving aside for the moment the measures currently being implemented such as the European Investment Fund and the system of interest rate subsidies referred to above, the question arises as to how and to what extent EIB assistance for SMEs could be improved.Economic interest groups, at least those in certain Member States, appear to have difficulties with the arrangements for intervention by intermediary bodies, in particular in respect of global loans. The answer is certainly not to replace the intermediary bodies by setting up branches of the EIB in the Member States, or by taking action which would run counter to the principles of the market economy.A number of new guidelines could be established, in accordance with the policy on the SME sectors, by improving arrangements for briefing the economic actors concerned at EC, national, regional and sectoral level, by strengthening coordination between the Commission and the EIB, between the enterprises and credit institutions concerned and between trade organizations and the public authorities. For example, the Commission Reports (Directorate-General for Regional Policy) detailing structural funds action in the various Member States could also systematically list EIB interventions. Similarly, the Commission's current high-level representations to the banking industry could also embrace the problems of financing enterprises in general and the scope for cooperation with the EIB in particular. The Member States could also review some aspects of their investment aid policy, fiscal policy, regional policy and land-use policy, with a view to possible cooperation and coordination with the work of the EIB. Finally, the SMEs and their trade associations could endeavour to establish soundly-based, effective mutual guarantee companies, which would not only help to facilitate access to loans, but could where appropriate effectively carry out the role of the intermediary bodies with regard to global loans.8.  The EIB and the new political, economic, social and monetary data 8.1.  It is not possible for the Committee to examine in detail in this Opinion the future prospects for the EIB's role, this role being laid down by the Treaty of Rome and subsequently confirmed by the Treaty on European Union.It is, however, clear that new guidelines within the prescribed framework are beginning to emerge, particularly in the wake of the Edinburgh, Copenhagen and Brussels Summits.On 23 September 1993, a cooperation agreement in respect of the 'Financial Instrument of Cohesion' (future cohesion fund) was signed between the EC Commission and the EIB. Reference should also be made here to the above-mentioned Council Resolutions of 11 November 1993 and the conclusions of the informal Council of Ministers responsible for regional policy and land use, held on 12 and 13 November 1993.8.2.  Individual loans and loans allocated under global loans awarded on the basis of 'horizontal criteria' are currently furthering a variety of objectives of interest to the Community. In addition to regional development objectives, the following objectives are also being promoted: trans-European infrastructures and networks, the environment and living conditions, energy and industrial objectives, including international competitiveness and small and medium-sized enterprises. The objectives of Community interest currently 'covered' by the EIB will probably undergo changes of emphasis and changes in the fields involved in the light of the following factors: the major changes which have occurred in recent years (opening-up of the former Eastern Bloc states, the upsurge in migration); economic stagnation and downturn in the EC, together with the attendant adverse effects, such as growing unemployment; the enlargement of the Community; the establishment of the European Economic Area (EEA) and the prospect of political union and monetary union in Europe. The question which therefore arises is whether the EIB will be involved directly in the consequent restrictions on and changes in the process of European integration, and whether the Bank will be able to respond satisfactorily without detriment to its specific role as an investment bank. It is thus likely that the EIB will undergo a major adjustment process and care should be taken here to avoid making the existing bureaucratic procedures more unwieldy.8.3.  Insofar as, under the provisions of the Treaty, the EIB is to act as an investment bank, it is primarily the responsibility of the Member States to encourage economic operators to avail themselves of the EIB's services in pursuance of the Member States' economic and social policies and, in particular, their policies for boosting growth and employment. In this same context consideration could be given to the possibility of making available loans under different terms, depending on what it is hoped to achieve by means of the loan.8.4.  In view of the increasing number of changes which will have to be introduced in a variety of areas of EC policy, it would be opportune to carry out an in-depth, overall appraisal of the role of the EIB.9.  Final observations 9.1.  In this Opinion and the accompanying Report on the subject the Committee is endeavouring to bring about:a)  a greater awareness of the role and activities of the EIB since ESC members may pass on the information contained in this report to a wider audience, provided that the parent socio-economic groupings give the report adequate publicity;b)  an improved insight into the scope for EIB intervention and the restrictions on such intervention, and more direct awareness amongst the economic interest groups involved: SMEs, area authorities and, more generally, the social partners;c)  the first steps towards closer coordination between the EIB and the Committee, particularly in terms of responding to the sometimes critical attitude taken with regard to the EIB's operation and with a view to securing a broad consensus and providing appropriate information, when necessary, in connection with the formulation, implementation, monitoring and assessment of new policy guidelines;d)  effective consultation with regard to the various questions touched upon in the preceding chapters.9.2.  These questions may be grouped together under the following broad subject headings:a)  improving information on the operation of the EIB by using appropriate instruments and existing information networks, such as the Euro-Information Centres;b)  the endeavour to find procedures for securing coordination and complementarity between the work of the EC Structural Funds, the investment aid policies of the Member States and EIB interventions;c)  the designation of the Committee as a forum for information, consultation and deliberation for trade organizations interested in the problem of financing enterprises and the EIB's role in investment finance;d)  a proper understanding of the frequently observed imbalance between, on the one hand, the EIB's scope for intervention and, on the other hand, the amount of funds which could be used by the Member States in the implementation of their regional policies, and the search for greater convergence in this respect;e)  the establishment of a system for the provision of information and cooperation between the Commission, the EIB and the Committee at the various stages in the implementation, monitoring and assessment of new regional development measures;f)  discussions on ways of improving (a) financing conditions for SMEs and (b) their opportunities of securing finance, bearing in mind: the role of the intermediary bodies and the way in which they operate; the arrangements for repaying and guaranteeing loans; the system of evaluating EIB interventions; and the scope for upgrading the role of mutual guarantee companies. The Commission should support the establishment of such companies and the EIB could also perhaps help to promote cost-effective operation;g)  the procedures under which the intermediary bodies, which specialize in the financing of SMEs, may have recourse to the European Investment Fund in respect of the provision of guarantees covering loans to SMEs, given the special role played by SMEs in stimulating growth.In pursuance of the conclusions of the European Summit in Brussels and the proposals made by the Council, consideration will also have to be given to how the system of interest subsidies for SMEs is to be implemented. In the Committee's view the goal should be to introduce agreements between the intermediary banks and eligible enterprises which include clauses providing for a subsidy applied to a predetermined rate of interest.9.3.  In the light of this Opinion and the accompanying Report, the Committee believes that preparations should be made forthwith to organize a symposium, the topics of which would be determined in agreement with the Commission, the EIB and possibly with the Committee of the Regions. The aim would be to establish a form of dialogue at the Committee which could help to provide a better understanding of one of the key aspects of European integration and to formulate appropriate solutions. This symposium would be important for two reasons: it would on the one hand, provide the first opportunity for cooperation between the ESC, the Committee of the Regions and the EIB and it would, on the other hand, prompt an appraisal of relations between institutions having different roles and approaches.Done at Brussels, 23 February 1994.The Chairmanof the Economic and Social CommitteeSusanne TIEMANN(1) OJ No C 705, 26. 3. 1990.(2) OJ No C 326, 3. 12. 1993.(3) REG (EEC) No 2081/93.(4) OJ No C 201, 26. 7. 1993 and OJ No C 304, 10. 11. 1993.(5) COM(93) 332 final - Proposal for a Council Decision on the provision of Community interest subsidies on loans for SMEs extended by the EIB under its temporary lending facility.CES 1005/93 - Proposal for a Council Decision empowering the Commission to contract borrowings for the purpose of extending loans to Member States under the bridging facility [COM(93) 332 final].CES 1002/93 - Proposal for a Council Decision on the provision of Community interest subsidies on loans for SMEs extended by the EIB under its temporary lending facility [COM(93) 332 final].(6) The European Observatory for SMEs - European Network for SME Research - EIM, P.O. Box 7001, NL - 2701 AA Zoetermeer.(7) For example:Opinion on Enterprise Policy - a New Dimension for SMEs OJ No C 102, 18. 4. 1991;Opinion on the Role of Mutual Guarantee Systems (MSG), in financing SMEs in the Community (OJ No C 169, 6. 7. 1992);Opinion on SMEs and craft industries (OJ No C 332, 16. 12. 1992);Opinion on Enterprise Policy - SMEs (OJ No C 161, 14. 6. 1993).