COSME and Horizon 2020 broaden the horizon for SMEs... Without any clouds?

COSME and Horizon 2020 broaden the horizon for SMEs… Without any clouds?

Financial instruments proposed by the European Commission in the next EU Multiannual Financial Framework 2014–2020 (MFF) aim to increase sustainable competitiveness of EU companies, establish an environment favourable to the business creation and growth and, what’s most important, facilitate business access to finance.

“We need to set up right instruments not only at European but also national level, involve banks and financial intermediaries and, last but not least, to build on the experience of current financial instruments such as CIP and FP7 programme”, said Jakub Dürr, Czech Deputy Permanent Representative to the EU at the debate organized jointly by CEBRE (Czech Business Representation to the EU), Czech Permanent Representation to the EU and CZELO (Czech Liaison Office for Research and Development) on 26th April 2012 in Brussels. Almost €1.4 billion within COSME (Programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises) and €3.8 billion within HORIZON 2020 (financial instrument implementing the Innovation Union, a Europe 2020 flagship initiative aimed at securing Europe’s global competitiveness) are dedicated to financial engineering which will take a form of loans, guarantees, equity or quasi-equity or participations.

The SME ́s access to financial instruments in both programmes will highly depend on how these instruments will be attractive to financial intermediaries who are to channel the money to its final beneficiaries. However, many of current instruments will continue in the new financial period. “Which means that we should insist on better structure, more efficient allocation of money and a new model of European Investment Fund”, stressed Paul Rübig, Member of the European Parliament’s Committee on Industry, Research and Energy and Committee on Budgetary Control. For this reason he welcomes the effort made by the European Commission to simplify its programmes, render them transparent and avoid overlaps.

European chambers strongly endorse the initiative to improve access to equity and debt financing, even though only 0.2% of the proposed EU Multiannual Financial Framework is allocated to COSME. “Which is very low considering the frequently cited pivotal role of SMEs in the delivery of the EU’s jobs and growth agenda”, explained Giovanni Campi, Senior Advisor, EU Affairs, EUROCHAMBRES. While stressing the need for raising the COSME loan guarantees and budget, BUSINESSEUROPE also called for a more holistic approach for the support of SMEs, for example through the European Regional Development Fund (ERDF). “The spectrum of SME needs is broad. It is very positive that tailor-made support for SMEs is included in the draft revised ERDF Regulation. But SMEs also need indirect support, resulting from positive action on the economic structures that surround them”, said Daniel Cloquet, Director of Entrepreneurship and SMEs, BUSINESSEUROPE.