Brussels, 18/09/2008 (Agence Europe) - In order to meet the development needs of the Europe of knowledge and the Lisbon Strategy, OSEO, the French state-owned business aimed at financing and accompanying SMEs in partnership with banks and risk capital investment bodies in the most decisive phases of the corporate life cycle (http://www.oseo.fr ) hopes to strengthen its activity for innovation and SMEs and develop its support for the growth of companies of intermediary size (ETI - enterprise de taille intermédiaire). The European Investment Bank states in a press release published on Tuesday 16 September that it is ready to play a part in these different OSEO initiatives.
The EIB states that the strengthened collaboration already established between EIB and OSEO is an essential sign for the French market at an economic time that is difficult for business. In this context, three first areas of cooperation have been identified: SME financing. OSEO estimates at €2 billion the growth of its needs in the next three years. The EIB will contribute to providing support for this effort by taking part in specific, identified SME OSEO programmes. EIB action will integrate new initiatives taken in favour of SME in Europe which resulted in the consultation conducted in 2007 on the financing needs of SMEs. OSEO will thus be one of the flagship partners of the EIB's new SME strategy in Europe. Financing of businesses of intermediary size. OSEO will, together with the EIB and banks, jointly finance investment of a significant amount undertaken by ETIs in research and development (R&D), as well as in the energy and environment sectors. According to a number of criteria set, activities eligible for such financing include the acquisition of tangible assets as well as investment in intangible assets (R&D, marketing spending and the constitution of commercial networks). The joint intervention of the EIB and OSEO may thus facilitate conclusion of a financing plan for certain key investments for these intermediary companies. Financing of R&D and innovation in the context of the Risk Sharing Finance Facility (RSFF). This mechanism is an initiative set in place by the EIB and the European Commission to allow the EIB to assume a higher level of risk on the financing of innovative projects. The EIB is willing to implement this mechanism to the benefit of innovative projects financed by OSEO as part of its two support programme: “aid to innovation” and “industrial strategic innovation”. OSEO intervenes in the financing of the development and innovation research project conducted by a company, on its own or in collaboration, through the payment of a reimbursable advance. EIB financing under the RSFF may intervene in co-financing the innovation project of the company that receives a reimbursable OSEO advance.
The effect of this collaboration will in fact be amplified by measures aimed at administrative, fiscal and legal simplification that the European Small Business Act is preparing to introduce in favour of SMEs in EU member states, the EIB says, announcing that other avenues of cooperation will be explored in the context of the knowledge economy (universities, student loans, poles of competitiveness, etc.) or to provide guarantees for risk capital investors on innovative projects. (O.L./transl.jl)