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Europe Daily Bulletin No. 8923
Contents Publication in full By article 16 / 42
GENERAL NEWS / (eu) eu/competitiveness

Commission adopts EUR 4.2 billion competitiveness and innovation programme

Brussels, 07/04/2005 (Agence Europe) - On Wednesday, the European Commission adopted a Competitiveness and Innovation Programme (CIP), the “little brother” of the 7th Framework Programme (see other article) as Director of DG Enterprise Mathias Ruete put it when, with Gregor Kreuzhuber, the spokesperson for Commissioner Verheugen, he presented the CIP to the press. “Linked to the Lisbon strategy”, the programme, which has a total allocation of EUR 4.213 billion for the period 2007-2013, aims to support action allowing for the innovative capacity of business and industry to be developed. Mr Ruete stressed this is a programme that seeks to combine several programmes currently being implemented into a single programme to bring the synergy between each of them into play but also to develop synergies with the 7th FPRD.

Programmes that have been “tried and tested” such as the multiannual programme for SMEs, the activities for industrial competitiveness and the LIFE-environment programme have thus merged and now form just one of the three CIP pillars essentially aimed at supporting SMEs. The Entrepreneurship and Innovation programme has a budget of EUR 2.631 billion including up to EUR 520 million for promoting eco-innovation. The programme will facilitate access to finance and support investment in innovation activities. It will provide SMEs with information and advice on single market opportunities and will also allow SMEs to have easier access to research programmes and 7th FPRD funding, as well as encourage the diffusion of research results and the development of innovation networks and groups. The programme will assist Member States in introducing a better regulatory and administrative environment for business and innovation. Finally, it will further develop strategies for industrial and service sectors and monitor their progress.

To give fresh impetus to development and the use of information and communication technologies (ICT) and, as Mr Ruete states, ensure that ICT projects not included in the 7th FPRD are taken into account, the CIP has a second pillar: the ICT Policy Support Programme with a budget of EUR 802 million. The programme will contribute to enhancing competitiveness, growth and jobs through stimulating a wider adoption and more efficient take-up of ICT. It will above all support operational demonstrations of technological and organisational solutions to ICT-based services at EU level in particular addressing interoperability, identity management and security challenges.

With a view to achieving a 12% share of renewable energy in total energy consumption by 2010 and reducing energy consumption, the CIP has a third pillar: the Intelligent Energy-Europe Programme which has a budget of EUR 780 million. The programme aims to support the development of environmentally-friendly technologies, mainly for reducing greenhouse gas emissions caused in the transport sector, energy efficiency and new and renewable energy sources.

The IEP includes other new elements: a risk capital instrument for high growth innovative companies (GIF2); of the securitisation of bank assets portfolios for SMEs which allow for increased loan capacity (facilitation of proximity financing); strengthening of role of innovation networks and support for enterprise (Euro Info and relay centres which will be developed to provide one-stop shops for SMEs and innovation; scheme to support the cooperation between national and regional programmes for business innovation; technological and organisation solutions for European services ICT; twinning programme for national and regional leaders to help exchange of good practices. Mr Kreuzhuber said that the IEP would bring a global response to the appeal launched at the midterm review for the Lisbon strategy for simplifying, targeting the strategy and providing greater visibility. Mr Ruete added that with 2/3 of its budget for them, the IEP is essentially focusing on SMEs. Ruete also guaranteed the possibility of SMEs benefiting from the lever effect which went from 1-40 in financial support from the European Investment Bank. Commissioner Viviane Reding said “The ICT Policy Support programme will provide the means to meet growing demands for better health care, efficient education and lifelong learning, better quality of life in old age, security, and social inclusion”. Commissioner Stavros Dimas added “The CIP will also be an important instrument to help overcome obstacles that investors, especially SMEs, often face when developing eco-efficient initiatives.” Commissioner Andris Piebalgs commented “The Intelligent Energy - Europe programme is a key element of the Union's strategy to reduce Europe's growing dependence on energy imports and to meet the Kyoto requirements.” More information: http: //europa.eu.int/comm/enterprise/enterprise_policy/cip/index_en.htm

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