JEREMIE Progress of the JEREMIE implementation and perspectives for SMEs - Overview - Dorota Kalina Zaliwska Directorate General for Regional Policy Unit D3 ‘Financial Engineering’ JEREMIE workshop, 2nd June 2008, Brussels

THE ENTERPRISE PYRAMIDE IN THE EU Source: EUROSTAT Number of enterprises in Europe (EU 25) [in thousands] 9 169 21,000 Informal sector 25 250 or more employees 50-249 employees 10-49 employees Less than 10 * 23.2 mln enterprises in EU25 * 99% of all European enterprises are SMEs * SMEs represent 75 mln jobs Source: Communication from the Commission dated 10/11/2006 on SME policy. Breakdown according to Eurostat 2006 (data 2003).

KEY FACTORS OF BUSINESS SUCCESS Source: EUROSTAT survey, 29/2006 Previous experience of a new entrepreneur helps but is not essential “Administrative problems” and “relations with customers” are considered as the main start-up problems Age and education play a role in launching a new business

SME ACCESS TO FINANCE IN THE EU Flash Eurobarometer SMEs basically use banks for their financing (8 SMEs out of 10) Venture capital is envisaged only by about 14% of EU SMEs 50% of SMEs seem to make use of leasing, renting, overdrafts 70% of SMEs surveyed believe that banks do not want to take risks

Purchasing power of customers (46%) Administrative regulations (36%) EU SMEs - MAIN BUSINESS CONSTRAINTS Observatory of European SMEs (April 2007) Purchasing power of customers (46%) Administrative regulations (36%) Lack (35%) and costs (33%) of human resources Infrastructure problems (23%) Limited access to finance(21%) smaller enterprises ~> more likely to have funding difficulties

LIMITED ACCESS TO FINANCE Observatory of European SMEs (April 2007)

EU SMEs - BARRIERS TO INNOVATION Observatory of European SMEs (April 2007) .

JEREMIE is a joint initiative of the Commission and the EIF/EIB JEREMIE stands for: ‘Joint European Resources for Micro to Medium Enterprises’ JEREMIE is a joint initiative of the Commission and the EIF/EIB Its objective is to address market failures regarding access to finance for SMEs and to support new business creation in the regions of the EU

LEGAL FRAMEWORK General regulation for the Structural Funds, 1083/2006, Art. 44, Art. 78(6) and 78(7) Commission regulation for the SFs, 1828/2006, Articles 43 – 46 EU legislation on: - Public procurement - State Aid Applicable national legislation

MAs select Holding Fund MAs contribute to Holding Fund JEREMIE PHASES (1) Phase 1 : Preparation Evaluations (2006-2007-2008) Programming Phase 2: Set-up MAs select Holding Fund MAs contribute to Holding Fund HF selects financial intermediaries HF supports /takes participations in financial intermediaries

Phase 3: Implementation Financial intermediaries support: - SMEs JEREMIE PHASES (2) Phase 3: Implementation Financial intermediaries support: - SMEs - micro-credit beneficiaries Closing OPs in 2015, or earlier Recycling OP resources

Operational Programme JEREMIE FLOW CHART Operational Programme FINANCIAL INTERMEDIARIES HOLDING FUND SMEs

Regional reports: UK, FR, ES, IT, DE JEREMIE EVALUATIONS Co - financed by: - Commission (75-85%) EIF (25%-15%) National reports: GR, RO, BG, LV, EE, LT, SI, DN, SK, CZ, MT, CY, HU, PT Regional reports: UK, FR, ES, IT, DE Overall 47 reports by the end of 2007, some more in 2008 for PL, DE, etc.

JEREMIE IN OPERATION (1) Some 85 OPs include an option to have JEREMIE or a JEREMIE type action EIF: THE KEY ACTOR FOR JEREMIE Greece first to sign a holding fund agreement with EIF in June 2007, Romania signed early 2008 Other MSs (Bulgaria, Slovakia, Latvia, Lithuania) expected to sign funding agreements with EIF soon

JEREMIE IN OPERATION (2) Regions in Poland, France, the UK, Spain, Italy, Germany, expected to sign funding agreements with EIF Hungary is already implementing and Finland envisages to implement JEREMIE type actions About 20 MSs expected to implement or to be inspired by JEREMIE

JEREMIE IN OPERATION (3) Very good perspectives Hard work required REGIO – EIF – MSs are the key players EIF expected to assume the challenge in about 15 MSs EU financial and banking sector and SMEs respond positively

Good luck JEREMIE! For further information: E-mail: REGIO-FINANCIAL-ENGINEERING@ec.europa.eu Website: http://jeremie.europa.eu