WRITTEN QUESTION E-1348/02 by Concepció Ferrer (PPE-DE) to the Commission. Actions to encourage venture capital.
Date: 2002-05-13
Institutions: European Parliament, Provisional data
Subjects: EU aid, EU initiative, EU programme, business start-up, corporate finance, job creation, small and medium-sized enterprises, venture capital

C 229 E/208

Official Journal of the European Communities

EN

26.9.2002

Answer given by Mr Bolkestein on behalf of the Commission

(18 June 2002)

In its answer to the Honourable Member’s Written Question No E-1450/00, the Commission had stated
that it was prepared to re-examine the possibility of taking initiatives concerning the residence or place of
establishment requirement when registering vehicles, depending on the Court of Justice ruling in case
C-451/99, ‘Cura Anlagen’. This ruling was handed down by the Court of Justice on 21 March 2002.

The Commission had already stated in its answer to Written Question No E-1450/00 that this question
had to be examined in relation to the freedom to provide services under the terms of Article 49 of the EC
Treaty. This approach has been confirmed by the Court of Justice.

In particular, the Court of Justice ruled that Article 49 precludes legislation which imposes ‘a requirement
that the person in whose name the vehicle is registered in the Member State of use reside or have a place
of business there, in so far as it obliges a leasing undertaking either to have a principal place of business in
that Member State or to accept registration of the vehicle in the name of the lessee and the consequent
limitation of its rights over the vehicle.’

As a result, the Commission intends to immediately investigate any infringements similar to the case
brought before the Court of Justice, in order to bring the Member States’ legislation in line with this case
law.

(2002/C 229 E/240)

WRITTEN QUESTION E-1348/02

by Concepció Ferrer (PPE-DE) to the Commission

(13 May 2002)

Subject: Actions to encourage venture capital

Venture capital has a major role to play in boosting innovation on the part of businesses in an open and
competitive economy.

In this connection, what actions has the Commission taken, and what actions does it intend to take, in
order to give the necessary encouragement to venture capital
in the EU and promote incentives to
enterprise creation, thus stimulating employment?

Answer given by Mr Liikanen on behalf of the Commission

(14 June 2002)

The Commission shares the opinion of the Honourable Member regarding the importance of risk capital
for the stimulation of innovation, growth and job creation. In its report on ‘Risk capital: a key to job
creation in the European Union’ of April 1998, the Commission identified the barriers to the development
of an efficient risk capital market in Europe and proposed, in the Risk Capital Action Plan (RCAP), a set of
measures to help remove these barriers. The Lisbon European Council of March 2000, the Stockholm
European Council of March 2001 and the Barcelona European Council of March 2002 requested that the
RCAP should be fully implemented by 2003. The third RCAP implementation report (1) was discussed at
the Parliament (rapporteur Mr SKINNER) and a resolution was adopted by the Parliament plenary at its
April 2002 session.

The strategy proposed by the RCAP to develop the Community risk capital market comprises three main
axes: (i) measures to foster market integration; (ii) structural reforms to address regulatory barriers and
fiscal constraints; and (iii) measures to promote a culture of entrepreneurship. Responsibility for action in
these policy areas is shared to a varying extent between the Community and the Member States. As the
third RCAP implementation report highlighted, progress is being made in setting up a proper regulatory
framework for the development of the risk capital market. In addition to those actions under the Financial
Services Action Plan (FSAP) that are relevant to the implementation of the RCAP, Member States have
undertaken a number of reforms at the national level.

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Official Journal of the European Communities

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These actions to create an environment
businesses are complemented by public funding limited to addressing identifiable market failures.

favourable to creating and sustaining new and innovative

For instance, the Growth and Employment Initiative (1998-2000) (Council Decision 98/347/EC (2)) and the
Multiannual Programme for Enterprise and Entrepreneurship, and in particular for the small and medium-
sized enterprises (SMEs) (2001-2005) (Council Decision 2000/819/EC (3)), contained measures to stimulate
the supply of risk capital in the Community, the most important of which was the European Technology
Facility (ETF) Start-up Facility.

Under ETF Start-up, the European Investment Fund (EIF), which manages the Facility on behalf of the
Commission, invests in relevant specialised venture capital funds, particularly in seed funds, smaller funds,
funds operating regionally or funds focused on specific sectors or technologies, or venture capital funds
financing the exploitation of Research and Technological Development (R & D) results.

The EIF, which became a part of the European Investment Bank (EIB) Group in the year 2000, also invests
its own funds and the EIB’s funds in venture capital activities. In recent years it has become one of the
most important market players in risk capital in the Community. Given the high risk of seed and early
stage finance, support comes from the Community budget, whereas the EIF’s and EIB’s own resources will
be used for less risky later stage investments. In addition, the guidelines for 2001-2005 for the European
Regional Development Fund (ERDF) allow the co-financing of regional risk capital funds in the assisted
areas.

With regard to actions envisaged, in the near future the Commission will present the evaluation of the
Growth and Employment Initiative. In October 2002 it will also present its fourth annual implementation
report on the RCAP and, before the end of 2002, a report on best practices in the field of Business Angels.

Furthermore, the progressive implementation of the Financial Services Action Plan by 2005 will also help
to restore investors’ confidence in risk capital markets and should positively influence the supply of risk
capital for European businesses by creating deeper pools of liquidity in European Capital markets.

(1) COM(2001) 605 final.
(2) 98/347/EC: Council Decision of 19 May 1998 on measures of financial assistance for innovative and job-creating

small and medium-sized enterprises (SMEs) the growth and employment initiative H OJ L 155, 29.5.1998.

(3) 2000/819/EC: Council Decision of 20 December 2000 on a multiannual programme for enterprise and
entrepreneurship, and in particular for small and medium-sized enterprises (SMEs) (2002-2005) H OJ L 333,
29.12.2000.

(2002/C 229 E/241)

WRITTEN QUESTION E-1359/02

by Gerhard Schmid (PSE) to the Commission

(14 May 2002)

Subject: Legislation on control of the acquisition and possession of weapons in the applicant countries

1. Which applicant countries have transposed into their legislation Council Directive 91/477/EEC (1) of
18 June 1991 on control of the acquisition and possession of weapons?

2.

In which countries are improvements necessary?

3. Where exactly are the improvements necessary?

4.

By what date must improvements be completedy?

(1) OJ L 256, 13.9.1991, p. 51.