Brussels, 07/06/2001 (Agence Europe) - The European Commission adopted its first decision based on the new Communication on State aids and capital-investment adopted two weeks ago, by approving the regional venture capital funds that the British government wants to create in each of the British regions. The aim this scheme, which will be financed by the British government and private investors, is to fill the void of capital for small and medium-sized enterprises that have needs for funds that are relatively small. Given that private investors are generally not so interested in entering into this segments of the market due to the high administrative costs compared to the amounts invested, this fund will attract them by offering a higher rate of return than that enjoyed by the government, which will be the minority stake holder in each fund. The fund managers as well as private investors will be selected in the framework of a call for tenders made at the EU level by one of several initiators in each region. The government will then select, for each region, the most interesting offers. The Commission felt that the element of State aid, included in the measure is compatible with the common market and thus closed the investigative procedure opened on 18 October 2000 (for more details see EUROPE of 20 October, p.15).