| Author (Corporate) | European Commission: DG Communication |
|---|---|
| Series Title | Press Release |
| Series Details | IP/06/1015 (19.7.06) |
| Publication Date | 19/07/2006 |
| Content Type | News |
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The European Commission has adopted Guidelines to determine when state aid to support risk capital investment in small and medium-sized enterprises (SMEs) is compatible with EC Treaty state aid rules (Article 87). The rules will facilitate access to finance for SMEs in their early stages of development, particularly where alternative means of funding from financial markets are lacking (i.e. market failure). Better access to capital will spur their growth and create more jobs in the EU. The Guidelines form part of the Commission’s efforts, announced in the State Aid Action Plan (SAAP - see IP/05/680 and MEMO/05/195), to encourage Member States to focus state aid on improving the competitiveness of EU industry, in particular through innovation, and on creating sustainable jobs, while minimising distortions of competition. The Guidelines include a €1.5 million investment per SME over 12 months (below which a market failure has been found to exist), a light assessment procedure for clear cut cases fulfilling certain conditions and assessment criteria which ensure that state funding will leverage private investment, target market failures and be proportionate. |
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| Source Link | Link to Main Source http://europa.eu/rapid/pressReleasesAction.do?reference=IP/06/1015&format=HTML&aged=0&language=EN&guiLanguage=en |
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| Subject Categories | Business and Industry, Internal Markets |
| Countries / Regions | Europe |
