Brussels, 21/10/2002 (Agence Europe) - The main conclusions of the European Commission's fourth progress report on the implementation of the Risk Capital Action Plan are that the amount of venture capital invested in the EU in 2001 fell by 35 % from 2000 levels. The fall was linked to the steep falls in the information technology sector in the USA where the decline in 2001 in venture capital was 62%. In spite of this contraction, investment in the US was still, in 2001, three times higher than in the EU (€41 billion as opposed to €12.7 billion). Investments in buyouts rose to €10.7 billion in Europe. Risk capital investments fell particularly sharply in accession candidate countries, where it is still at a low level, points out the Commission.
The report also provides a balance sheet of the progress achieved in the risk capital markets since 2003 and the commitments made at the Barcelona Summit. It demonstrates how the agreement between Parliament and the Council for implementing the "Lamfalussy method" in the securities markets, as well as the adoption of important legislation for international accountancy standards (IAS) for European companies quoted on the stock exchange. The Commission claims that there is "still a lot to do", particularly in the areas such as the adoption of the Community patent and the lifting of tax barriers.
In the area of public funding, the report points out that in 2001 the Commission adopted a Communication on "state aid and risk capital". The funding and influence of the European Investment Fund (EIF) is expanding rapidly and handles already a portfolio in excess of €2.2 billion, invested in more than 160 funds, despite the "difficult market conditions". In a press statement, the Commission indicates that according to, "Programming documents for regional funds for the period 2000-2006 suggest that risk capital investment may be double the amount invested in the period 1994-1999". The Report is available on the Commission's Europa website: (http: //http://www.europa.eu.int/comm/internal_market/en/finances/general/index.htm ).