Brussels, 17/03/2009 (Agence Europe) - On Monday 16 March, the European Commission approved a temporary increase in investment tranches of a French risk-capital scheme, which it approved in March 2008. The proposed modifications are in line with the Commission's Temporary Framework for state aid measures to support access to finance in the current financial and economic crisis. In particular, the increase in investment tranches will be possible only until the end of 2010.
The measure put forward by France on March 2 amends an existing risk-capital scheme previously approved by the Commission. This scheme allows for reductions of the tax on wealth (ISF - impôt de solidarité sur la fortune) for individuals investing in small and medium-size enterprises (SMEs), thus facilitating access to risk capital for these enterprises. The temporary modification consists of raising the maximum investment tranches from €1.5 million to €2.5 million over each 12-month period. This amendment, approved under the temporary framework for state aid measures will be valid until the end of 2010. This measure is one of a series of French real economy schemes to address the current credit crunch already approved by the Commission. The approved schemes include: - temporary scheme allowing subsidised guarantees to boost real economy; - temporary scheme allowing aid to firms in the form of reduced interest rates; - temporary scheme to grant reduced interest loans to businesses producing green products; - temporary scheme for businesses up to maximum of €500,000; - financial support measures to the banking industry in France (refinancing and recapitalisation). (O.L./transl.rt)