WRITTEN QUESTION No. 1685/96 by Francis DECOURRIERE to the Commission. Structural funds and financial engineering
Date: 1996-06-17
Institutions: DECOURRIERE, European Parliament
Subjects: European Regional Development Fund, Structural Funds, financing method, less-favoured region, regional development, small and medium industries, small and medium-sized enterprises













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91996E1685

WRITTEN QUESTION No. 1685/96 by Francis DECOURRIERE to the Commission. Structural funds and financial engineering  


Official Journal C 365 , 04/12/1996 P. 0017 





WRITTEN QUESTION P-1685/96 by Francis Decourrière (PPE) to the Commission (17 June 1996)Subject: Structural funds and financial engineeringThe various Structural Fund single programming documents relating to Objectives 1 and 2 refer specifically to support for financial services for SMEs.One example is the Objective 1 DOCUP for the districts of Avesnes/Helpe, Douai and Valenciennes, which provides, in Priority 1, Subpriority 1, Measure 2, Submeasure 2, for ERDF funds to be used to:- guarantee bank loans for SMEs and- provide plentiful start-up capital for the development of risk capital.These measures to support the setting up or expansion of SMEs have a considerable leverage effect on job creation.As objections have been raised since these DOCUPs were adopted, a joint working party on financial engineering has been set up by Directorate-General XVI and Directorate-General XX.This working party is continually postponing delivering its conclusions, which is affecting a large number of projects under both Objective 1 and Objective 2.Can the Commission say what measures it intends to take to effect the implementation of these measures, which are so important to the economic future of these regions?Answer given by Mrs Wulf-Mathies on behalf of the Commission (26 July 1996)The Structural Fund regulations stipulate that these can be used to support financial engineering measures, such as acquisitions of holdings and the provision of guarantees, without however laying down detailed provisions for the implementation of such measures.In view of the growing number of relevant proposals from the Member States, the Commission departments saw it fit to establish guidelines to ensure the viability and transparency of such measures, as well as proper use of Community funds, while also including appropriate handing-over arrangements. On 26 July 1995 the Commission took note of the general principles and of the detailed guidelines for use by its departments in dealing with funding proposals for risk capital within the framework of the Structural Funds.Since then, all financial engineering measures envisaged by the Member States in the programming documents have been assessed by the Commission using the guidelines. The Commission also transmitted the guidelines to the Member States for information as part of the discussions that it is holding with them with the aim of achieving proper and effective management of the Community budget (SEM 2000 exercise).With regard to the Nord-Pas-de-Calais region, five financial engineering projects are currently being examined by the Commission departments working with the projects' sponsors. The establishment of an agreement for each one of the projects, in conformity with the above-mentioned Commission guidelines, should make it possible for the difficulties encountered in their implementation to be overcome.It would seem, however, that implementation of certain projects has been suspended pending the publication of an interministerial circular currently being drafted by the French authorities.