The Euramtech project was the result of a joint initiative by the Commission and a group of European Venture Capitalists led by Granville and Company to find ways of bringing together European machine-tool industries into larger and more viable groups. Most machine-tool builders in the Community are small firms with two pronounced weaknesses: inadequate capital resources and a disproportionate amount of short-term debt. In Europe there is great difficulty in procuring long-term high risk capital for an industry whose current profitability does not permit it to generate sufficient funds of its own while the small size of the undertakings limits their ability to come to the stock market. The aim of the project, and the particular reason for the Commission's close support, was to demonstrate how transnational groupings could be built up within the Community supported by transnational funding. Experience has shown that once such a venture has been carried out successfully, others are usually more willing to follow. The problem in Europe today is that while there is agreement on the need for urgent action, no one is prepared to lead the way.
Bibliographic Reference: EUR 11055 EN (1987) FS, 95 P., BFR 400, EUROFFICE, LUXEMBOURG, POB 1003
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Record Number: 1989126010300 / Last updated on: 1989-03-01
Available languages: en