Brussels, 20/03/2012 (Agence Europe) - Parliament is working flat out to ensure that structural funds are used to help the economic recovery. On Tuesday 20 March, MEPs from the regional development committee approved the setting up of a shared risk mechanism financed from structural funds to boost private investment for European projects in countries receiving EU macro-economic assistance.
The financial instrument will help regions experiencing difficulty and to which the banks no longer want to lend money for their development projects, due to lack of liquidity or excessive risk. The idea is to mobilise some of the structural funds and the guarantees involving the European Commission and European Investment Bank (EIB) and other financial institutions, in an effort to provide assurances for private investors and encourage them to support projects that are partly funded by European Regional Development Funds and Cohesion Funds. Following the REGI committee's vote in favour of this mechanism, its president, Danuta Hübner (EPP, Poland) stated: “Europe, and in particular the economies in distress, need growth. The European institutions should spare no effort to facilitate the use of structural funds for growth and job creation. The risk-sharing facility can increase the involvement of the private sector in funding important projects, generating employment and growth.” The Parliament is therefore speeding up its work to ensure that the mechanism is available as early as possible. The plenary vote will take place next April.
Greece has already indicated that it would like to benefit from this mechanism (mainly for helping to develop franchises on motorway tolls) but Ireland, Portugal and Romania may also be eligible because the mechanism does not exclusively apply to countries receiving EU financial assistance. These member states have until August 2013 to submit a request to the Commission, which will have four months to reply. (MD/transl.fl)