Presentation for the press conference in Brussels on 18 March 2009 concerning Special Report no 1/2009 on the banking measures in Mediterranean Areas in the context of the MEDA programs and previous protocols

The purpose of the MEDA regulations was to contribute to initiatives of joint interest in the Euro-Mediterranean partnership aiming at the reinforcement of political stability and democracy; the creation of a Euro-Mediterranean free-trade area; and the development of economic and social cooperation. Besides the EU financial support for Mediterranean partner countries directly managed by the Commission, the MEDA Regulations also envisaged three types of banking measures which were managed by the EIB, under a mandate from the Commission. These were technical assistance measures, which usually contain capacity strengthening and/or financing upstream studies and activities; interest rate subsidies for environmental loans granted by the EIB from its own resources; and risk capital operations. These operations usually take the form of direct investments in private companies, private equity funds, co-investments, loans on special conditions or support to guarantee schemes. Since October 2002 all EIB operations in the Mediterranean region have been brought together under the Facility for Euro-Mediterranean Investment and Partnership, also called FEMIP.

The Court carried out the performance audit in 2006 and 2007. When carrying out this audit we took into account that the banking measures under MEDA programmes have a long duration and the spending from the EU was carried out over a long period. The audit was based on a review of the approval, implementation, monitoring and reporting systems in place at the Commission and the EIB. At the project level the Court conducted a detailed documentary review of 30 projects for each of the three types of banking measures. Our audit was completed by on-the-spot visits to Egypt, Tunisia and Morocco, who combined received some 70% of the financial support made available for banking measures in the context of the MEDA programs.

European Court of Auditors: ECA/09/18: Information note of the European Court of Auditors concerning Special Report No 1/2009 http://europa.eu/rapid/pressReleasesAction.do?reference=ECA/09/18&format=HTML&aged=0&language=EN&guiLanguage=en

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