Brussels, 02/07/2009 (Agence Europe) - On Thursday 2 July, the European Commission adopted its proposal for a decision on the creation of a European microfinance facility in favour of employment and social inclusion (Progress Microfinance Facility - see EUROPE 9932). In a statement to the press, Commissioner Vladimir Špidla underlined that this instrument must serve to help those who have been hit by the economic crisis. “The Commission is determined to support the spirit of enterprise, independent workers, above all in the social economy. Funding will be open to all but we shall give preference to the most vulnerable, such as the young, and to those for whom banks are rationing credit”, Mr Špidla added, citing by way of example taxi drivers and hairdressers who lose their jobs and could be hampered in their search for another due to the difficulty of finding funding. The proposal must be adopted according to EP-Council codecision procedure, with the Council enacting by qualified majority.
As far as the budget is concerned, the proposal states that: (1) the financial contribution from the Community budget for the Facility for the period from 1 January 2010 to 31 December 2013 shall be €100 million; (2) the annual appropriations shall be authorised by the budgetary authority within the limits of the financial framework; (3) the total budget for support measures (mainly activities of communication, follow-up, control, audit and assessment) shall not exceed 1% of the budget of the Facility (which is €100 million); (4) the financial contribution shall cover the full cost of the Facility including management fees for international financial institutions (EIB, EIF) responsible for managing the Community contribution as well as any other eligible costs; (5) when actions are financed under this decision, the Commission must ensure that the financial interests of the Community are protected by the application of measures to prevent fraud, corruption and any other illegal activities, by effective checks and by the recovery of amounts unduly paid and, if irregularities are detected, by effective, proportional and dissuasive penalties; (6) for the first time in 2011 and before 31 December of each year, the Commission shall present to the EP and Council a quantitative and qualitative annual report on the activities under this decision in the previous year. (G.B./transl.jl)