Commission adopts pilot project to stimulate formation of innovative SMEs in coal and steel regions
The European Commission adopted a report on 10 April on a pilot project proposing to stimulate the creation of innovative small and medium sized enterprises (SMEs) in coal and steel producing regions within the EU. The regions involved in the project are in Belgium (Wallonia), France, Germany (Dortmund) and the UK, but if the pilot project demonstrates that this instrument meets a real market need, a larger scale follow up programme covering all EU Member States and candidate countries may be envisaged. The project will be funded with two million euro from budget line B5-504 (measures to assist the phasing-in in the general budget of the activities financed through the ECSC [European coal and steel community]). The European confederation of iron and steel industries, EUROFER, responsible for managing the guarantee fund as a trust on behalf of the Commission will issue guarantees, partially covering loans and equity investments made by specialised financial intermediaries to innovative SMEs. Most of the companies involved will be operating in the 'new economy' or other innovative industries and will include SMEs and start-ups in regions where industrial restructuring is taking place in the coal and steel industries. The main objective of the new instrument is to give continuing redevelopment support to coal and steel regions after the expiring of the ECSC Treaty in July 2002. Most of the target regions for the project were formerly ECSC regions benefiting from conversion loans under the ECSC Treaty.