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# 51998AP0114

**Legislative resolution embodying Parliament's opinion on the proposal for a Council Decision on measures of financial assistance for innovative and job- creating small and medium-sized enterprises (SMEs) - the Growth and Employment Initiative (COM(98)0026 C4-0138/98 98/0024(CNS))** 
  
*Official Journal C 138 , 04/05/1998 P. 0093*

  

A4-0114/98

Proposal for a Council Decision on measures of financial assistance for innovative and job-creating small and medium-sized enterprises (SMEs) - the Growth and Employment Initiative (COM(98)0026 - C4-0138/98 - 98/0024(CNS))

The proposal was approved with the following amendments:

(Amendment 1)

Recital 2

>Original text>

(2) Whereas the European Special Council on Employment, meeting in Luxembourg on 20 and 21 November 1997, welcomed the European Parliament's Growth and Employment Initiative, providing for the strengthening of budgetary resources earmarked for employment; whereas the European Council invited the Commission to make proposals, as soon as possible, for new financial instruments to support innovatory and job-creating SMEs, so that the Council can adopt them speedily; whereas these new instruments must reinforce the European Technology Facility, financed by the European Investment Bank and administered by the European Investment Fund, by opening a 'risk capital window¨, supporting the creation of transnational joint ventures between SMEs within the European Union and establishing within the European Investment Fund a special guarantee fund to facilitate risk-taking by institutions providing finance for small and medium-sized enterprises;

>Text following EP vote>

(2)

Whereas the European Special Council on Employment, meeting in Luxembourg on 20 and 21 November 1997, welcomed the European Parliament's resolution of 21 October 1997 embodying Parliament's proposal to the extraordinary European Council meeting on Employment (20-21 November 1997)(1) and its initiative providing for the strengthening of budgetary resources earmarked for employment; whereas in its decision on the 1998 budget, the European Parliament in agreement with the Council created a new heading B5-5 (Labour market and technological innovation) for the financing with ECU 450 million over three years (1998-2000) of SMEs and of innovative actions and projects in the labour market; whereas the European Council invited the Commission to make proposals, as soon as possible, for new financial instruments to support innovatory and job-creating SMEs, so that the Council can adopt them speedily; whereas these new instruments must reinforce the European

>Original text>

>Text following EP vote>

Technology Facility, financed by the European Investment Bank and administered by the European Investment Fund, by opening a 'risk capital window¨, supporting the creation of transnational joint ventures between SMEs within the European Union and establishing within the European Investment Fund a special guarantee fund to facilitate risk-taking by institutions providing finance for small and medium-sized enterprises;

(1) OJ C .....

(Amendment 2)

Recital 9a (new)

>Original text>

>Text following EP vote>

(9a) Whereas the importance of concentrating financial resources on small and medium- sized enterprises of less than 100 employees, requires that the Commission give priority to the implementation of a cooperation agreement to be established with the EIF;

(Amendment 18)

Article 1

>Original text>

A programme of financial assistance for innovatory and job-creating small and medium-sized enterprises is hereby set up with the aim to facilitate the establishment and growth of innovative SMEs (hereinafter 'the programme¨) as defined in Recommendation 96/280/EC, by supporting their investment activity through increased availability of finance, and thereby stimulating the creation of employment.

>Text following EP vote>

A programme of financial assistance for innovatory and job-creating small and medium-sized enterprises is hereby set up with the aim to

stimulate job-creation by facilitating and strengthening the establishment and growth of innovative SMEs (hereinafter 'the programme¨) as defined in Recommendation 96/280/EC by supporting their investment activity through increased availability of finance. A part of the Programme should be devoted to the financing of SMEs in the third system, in particular in sectors such as public health, education and culture. In the implementation of the programme, priority shall be given to small enterprises with up to 100 employees.

(Amendment 4)

Article 2

>Original text>

The programme shall consist of three complementary facilities which shall be a risk-capital scheme ("ETF Start-up¨) managed by the European Investment Fund (EIF), a scheme for financial contributions supporting the creation of transnational joint-ventures by SMEs within the European Union ('Joint European Venture¨) managed by the Commission and a guarantee scheme ('SME Guarantee Facility¨) managed by the EIF.

>Text following EP vote>

The programme shall consist of three complementary facilities which shall be a risk-capital scheme ("

Euro Start-up¨) managed by the European Investment Fund (EIF), a scheme for financial contributions supporting the creation of transnational joint-ventures by SMEs within the European Union ('Joint European Venture¨) managed by the Commission and a guarantee scheme ('SME Guarantee Facility¨) managed by the EIF.

(Amendment 5)

Article 3, title

>Original text>

The ETF start-up facility

>Text following EP vote>

The

Euro start-up facility

(Amendment 16)

Article 3(1)

>Original text>

1. The Community shall provide risk-capital participations in SMEs primarily at their establishment and early stages and/or innovative SMEs through investments in relevant specialized venture-capital funds, particularly in smaller or newly established funds, funds operating regionally or funds focused on specific industries or technologies, or venture-capital funds financing the exploitation of R& D results, e.g. funds linked to research centres and science parks.

>Text following EP vote>

1.

The Community shall provide risk-capital participations in SMEs primarily at their establishment and early stages and/or innovative SMEs through investments in relevant specialized venture-capital funds, particularly in:

- smaller or newly established funds,

- funds operating regionally,

- funds focused on specific industries or technologies, or

- venture-capital funds financing the exploitation of R& D results of SMEs linked to research centres and science parks.

(Amendment 6)

Article 4(2)

>Original text>

2. Eligible expenses for the purposes of point (a) of paragraph 1 are those essential expenses related to the conception and setting-up of a transnational joint venture defined in point 6 of Annex II and created by European SMEs.

>Text following EP vote>

2.

Eligible expenses for the purposes of point (a) of paragraph 1 are those essential expenses related to the conception and setting-up of a transnational joint venture defined in point 6 of Annex II and created by SMEs.

(Amendment 8)

Article 5a (new)

>Original text>

>Text following EP vote>

Article 5a

Promotion of the facilities

The cooperation agreements between the Commission and the EIF referred to in Articles 3 and 5 shall take account of the need to ensure a wide dissemination of information concerning the schemes, especially to women entrepreneurs.

(Amendment 19)

Article 6(1)

>Original text>

1. The Commission shall report annually to the European Parliament and the Council on the implementation of this Decision, notably on its impact on the access to financing by SMEs, its immediate effects on the creation of employment and the prospects for the creation of employment in the long term.

>Text following EP vote>

1.

The Commission shall report annually to the European Parliament and the Council on the implementation of this Decision, notably on its impact on the access to financing by SMEs, its immediate effects on the creation of employment and the prospects for the creation of employment in the long term. The Commission's report shall include an assessment of the implementation of the different schemes.

(Amendment 21)

Article 6(2)

>Original text>

2. The Commission shall within 48 months at most from the date of its adoption, provide an evaluation on the programme, notably on its overall utilization, its immediate effects on the creation of employment and the prospects for the creation of employment in the long term, in particular for the purpose of assessing possible future action beyond the initial period.

>Text following EP vote>

2. The Commission shall within

24 months at most from the date of its adoption and 9 months before the expiry of the Decision, provide an evaluation on the programme, notably on its overall utilization, the distribution by size and sector of the SMEs aided, the cost-effectiveness of the different schemes, their immediate effects on the creation of employment and the prospects for the creation of employment in the long term, in particular for the purpose of proposing adjustments in the operation of the schemes, the distribution of financial resources among them and assessing possible future action beyond the initial period.

(Amendment 11)

Article 6(2a) (new)

>Original text>

>Text following EP vote>

2a. The final assessment on employment should be conducted by an independent body, taking into account in particular the following elements:

>Original text>

>Text following EP vote>

- quality of job creation (eg. social protection, equal opportunities, trade union rights),

>Original text>

>Text following EP vote>

- type of job creation (professional level, full or part-time, typical or atypical)

>Original text>

>Text following EP vote>

- sectors concerned and future prospects.

(Amendment 12)

Article 6a (new)

>Original text>

>Text following EP vote>

Article 6a

Recycling of balances

Balances resulting from individual actions or operations could be recycled during the life of this facility, but in any case all balances have to be returned, at the latest, after 15 years.

(Amendment 13)

Article 6b (new)

>Original text>

>Text following EP vote>

Article 6b

Management fees

The Commission shall ensure that the management fees and other eligible expenditure incurred by the EIF are determined in accordance with accepted market practice and can be debited to the appropriations devoted to the initiative.

(Amendment 20)

Article 6c (new)

>Original text>

>Text following EP vote>

Article 6c

Intermediary financial institutions

The intermediary financial institutions shall be selected in an open and transparent manner, and where necessary on the basis of a competitive tender.

(Amendment 14)

Article 7

>Original text>

This Decision shall enter into force on adoption by Council and shall cover a three- year period.

>Text following EP vote>

This Decision shall enter into force on adoption by Council.

It shall remain in force until all appropriate repayments have been made and entered in the budget. The financing of this Decision shall cover a three-year period. On the basis of the second annual report, the Commission may propose to the budgetary authority that it extend the financing for a longer period.

(Amendment 15)

ANNEX I, Title

>Original text>

ETF start-up scheme

>Text following EP vote>

Euro start-up scheme

(throughout Annex I)

(This change to apply throughout the Annex).

Legislative resolution embodying Parliament's opinion on the proposal for a Council Decision on measures of financial assistance for innovative and job-creating small and medium-sized enterprises (SMEs) - the Growth and Employment Initiative (COM(98)0026 - C4-0138/98 - 98/0024(CNS))(Consultation procedure)

The European Parliament,

- having regard to the Commission proposal to the Council COM(98)0026 - 98/0024(CNS),

- having been consulted by the Council pursuant to Article 130(3) of the EC Treaty (C4-0138/98),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Employment and Social Affairs and the opinions of the Committee on Budgets and the Committee on Economic and Monetary Affairs and Industrial Policy (A4-0114/98),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 189a(2) of the EC Treaty;

3. Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;

4. Asks to be consulted again should the Council intend to make substantial modifications to the Commission proposal;

5. Instructs its President to forward this opinion to the Council and Commission.

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