European Council pushes forward the EIF into the Lisbon strategy

The European Council held in Brussels on 22 and 23 March 2005, under the Luxembourg Presidency of the European Union, urged the European Investment Fund to diversify its activities, in particular towards the financing of innovative SMEs through individual-investor (business-angel) and technology-transfer networks. Flexible funding suited to such activities should be found, together with the Commission. This action should also be supported by the new Community competitiveness and innovation programme.

Francis Carpenter, EIF Chief executive declared:

"The Member States have validated the importance of EIF as a unique public-private operational platform that meets the Community objectives, notably in the field of financing of innovation and entrepreneurship. We are ready to embark on new routes alongside our traditional venture capital activity as risk capital arm of the European Investment Bank in the field of technology transfer and business angels, to reinforce the gap prevailing between research and its commercialisation."

He added: "These developments are key to translate into reality the new impetus the European Council wants to give to research and innovation as part of a growth and employment strategy."

The European Investment Fund (EIF) in which the European Investment Bank (EIB) is lead shareholder (almost 60%) alongside the European Commission (30%) and a cluster of banks and financial institutions, specialises in venture capital, SME guarantees and advisory services. The EIF operates through financial intermediaries (some 350) using its own funds or those entrusted to it by its shareholders or third parties. EIF is notably the EIB's "Risk capital arm" in the context of the Innovation 2010 Initiative. EIF operations are driven by twofold objectives: serving EU policies and generating financial returns. EIF enjoys a AAA rating and a Multilateral Development Bank (MDB) status. As at 31 December 2004, EIF total portfolio amounted to some EUR 10.5 bn.