Brussels, 01/07/2011 (Agence Europe) - The network for the promotion of investment in the Mediterranean, ANIMA, which is supported by the EIB, has announced the launch of a brochure to convince European businesses not to be discouraged by democratic change in the Mediterranean area and the economic fallout of this. “The pro-democracy uprisings which have occurred on the southern shore of the Mediterranean will certainly have an impact on the strategies of businesses in the region.” Despite these “upheavals and the greatly variable situations in the various partner countries, there is growing interdependence between the European Union and the countries of the South and East of the Mediterranean”, states the network, which has used its brochure to outline a few “success stories” of European businesses which have chosen to move fully or partly to the region.
The publication of this brochure draws attention against the backdrop of an economic situation which is not the best, as ANIMA acknowledges: “the period does not favour trade in the region and does not offer sufficient visibility to investors to implement new projects.” The situation can be illustrated by the recent downgrading of these countries' ratings, even though, the network stresses, they have made “considerable efforts over the last 10 years to set in place legislation, institutions and infrastructure to favour the development of the private sector”. And from a purely micro-economic point of view, they have “made considerable progress, which can be seen in the general increase of their FDI, growth and exports.”
Nonetheless, ANIMA remains cautious and admits that it is hard to “predict developments in the political context over the next few months with any certainty”. On the long term, however, the partner countries “hold the seeds of their own development. It is up to them to plant the seeds, with the help of their civil society and all micro- and small businesses working in all sectors every day”, adds ANIMA. In order to prepare for this, the partner countries should lay greater emphasis on their reform efforts, choose options which promote job creation and entrepreneurial initiative and, above all, make sure that they set in place conditions for political stability.
The EU's support and help is needed “to accompany them” in getting out of crisis. It remains the largest investor and largest trade partner of the Mediterranean, “with intentions which have not dropped despite the global crisis”. The European Commission provides technical and financial support to help young people to go into business and to encourage SMEs in the Mediterranean neighbour countries. Via its subsidiary FEMIP (Facility for Euro-Mediterranean Investment and Partnership), it invested the record volume of €2.6 billion in 2010.
The “most remarkable thing”, the network continues, is the attitude of the heads of European small and medium-sized enterprises, as their level of investment has been “less affected than that of the larger businesses”, to say nothing of the fact that “these SMEs generate, on average, twice as many jobs per euro invested as large businesses and multinationals”. Together, businesses on either side of the Mediterranean have faced a global crisis. This common challenge, ANIMA argues, is for the EU to “rebalance its relations with the neighbours of the South Mediterranean, favouring a better division of added value”. It is noted that for the last two years, European businesses “are more often choosing to approach these markets by means of partnerships with local businesses”. At the same time, ANIMA is announcing its intention of promoting an initiative for “Socially Responsible Investment” in the region. (F.B./transl.fl)