Commission announces the “Competitiveness and Innovation Programme” to boost growth and jobs

With a view to concentrating various EU programmes in support of the Lisbon objectives (e.g. the pursuit of a knowledge-based society, innovation, economic growth, employment and the promotion of entrepreneurial spirit), the European Commission recently unveiled a proposal for a new EUR 4.2bn Competitiveness and Innovation Framework Programme (CIP).

Covering the period 2007-2013, the CIP Framework contains three programmes: (i) the Entrepreneurship and Innovation Programme, (ii) the ICT Policy Support Programme and (iii) the Intelligent Energy-Europe Programme. EIF shall manage or be involved in the implementation of the Entrepreneurship and Innovation Programme, which builds on the current Multiannual Programme mandate under which EIF has been investing in seed capital funds and providing guarantees to financial institutions since 2001.

It is foreseen that under the new Entrepreneurship and Innovation Programme, in its venture capital investments EIF will assume a wide focus by stage, investing in later stage funds alongside seed and early stage (existing focus). On the other side of the investment cycle, the new programme foresees a support for business angels. As a new guarantees element, an instrument for the securitisation of bank loan portfolios has been introduced. Such an instrument will free up further SME loan capacity amongst smaller and regional banks, which are the typical interface for family businesses, and which is important to develop the availability of proximity financing for more traditional small businesses. Lastly, technical assistance schemes for seed capital and SME finance are also included in the proposal.

The geographic eligibility of the CIP will include EU Member States, European Free Trade Agreement countries, EU accession and candidate countries, the Western Balkans as well as other countries subject to specific agreements. The financial envelope of this Programme should amount, for instruments under EIF management, to about EUR 1bn for the period 2007/2013.

The proposal was adopted by the European Commission on 6 April 2005 and will be transmitted to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions. More information can be found on the Internet site of the Commission's Directorate General for Enterprise and Industry:

http://europa.eu.int/comm/enterprise/enterprise_policy/cip/index_en.htm