1. 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

2. 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
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).

3. 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

4. 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

5. 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

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

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

8. 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

9. 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

10. MAs select Holding Fund MAs contribute to Holding Fund
JEREMIE PHASES (1)
Phase 1 : Preparation
Evaluations ( )
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

11. 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

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

13. 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.

14. 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

15. 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

16. 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

17. Good luck JEREMIE! For further information:
Website: