Brussels, 01/06/2012 (Agence Europe) - European industry ministers reached partial general approach on Wednesday 30 May on the main elements of a programme relating to the competitiveness of SMEs for the period 2014-2020, the COSME instrument, proposed end 2011 by the European Commission.
The agreement on the content of COSME aims to facilitate the launch of discussions with the European Parliament with a view to rapid endorsement. EP rapporteur Jürgen Creutzmann (ALDE, Germany) is to present his amended project to the members of the industry committee on 18 June.
All delegations have underlined the importance of the programme for helping to alleviate the impact that the “credit crunch”, caused by the financial crisis, has on EU businesses. Facilitated access to funding should be accompanied by an effective regulatory environment. Member states also agreed on the principles for simplifying procedures and on the need to avoid too much red tape when implementing COSME provisions. Delegations underlined the role played by the tourism sector in the programme, while others underlined the importance of strengthening the Enterprise Europe Network as a way to promote the competitiveness of SMEs in and beyond the EU.
With a budget of €2.5 billion (to be decided within the general EU budget framework), COSME will be a substitute for the CIP for remedying market failings and promoting access by SMEs to financing, and for encouraging the entrepreneurial spirit and the setting up of businesses. €1.4 billion is earmarked for access to funding, the programme's key priority, and COSME will support SMEs via a risk capital facility for investment in the growth phase and direct loans or other risk-sharing mechanisms with financial intermediaries to cover lending. COSME also provides for support to be provided for SMEs in order to help them gain access to markets within the EU and worldwide. Finally, the programme aims to encourage the creation of businesses by promoting the development of entrepreneurial skills and expertise, especially among women and young entrepreneurs. (EH/transl.jl)