Private firms deliver verdict on Euro-Med projects at ground-breaking meeting

Date: 01/10/1998

By Simon Taylor

PRIVATE sector companies will deliver their verdict on the impact of EU cooperation projects designed to boost investment in Mediterranean basin countries at a meeting with Union industry ministers this weekend.

European Commission officials say the meeting will provide ministers with their first opportunity to hear from the “real world” about what the private sector thinks of their projects.

Ministers from the EU's 15 member states and the 12 Mediterranean countries covered by the Euro-Med partnership are expected to attend the meeting in Klagenfurt, Austria, along with representatives from a range of private sector organisations.

Speakers will include Greek Industry Federation president Jason Stratos and representatives from the Tunisian Trade and Industry Association, Spanish giant Mondragon, Turkish conglomerate Eczacibasi and the Tunisian Textile Council.

Topics to be discussed include the role of small and medium-sized enterprises and information technology in industrial development. Ministers will also hear from Alfred Steinherr of the European Investment Bank on financing industrial infrastructure.

The Commission has been encouraged by the fact that all the signatories to the Euro-Med partnership are sending high-level representatives to the meeting including Israel, Lebanon, Syria and Turkey.

The EU will be represented by Industry Commissioner Martin Bangemann and small and medium-sized enterprises supremo Christos Papoutsis.

The main focus of the meeting will be to assess the effectiveness of the industrial cooperation projects under the Euro-Med programme in improving countries' industrial infrastructure.

Delegates are expected to stress the importance of the link between free trade and support for economic transition and private investment.

Commission sources say they are satisfied with progress made so far in devising common projects for the 27 countries which participate in the Euro-Med programme.

The meeting will focus on the three types of projects already proposed by the Commission: setting up industrial zones, specialised service centres which offer advice on marketing and technology, and investment promotion agencies.

Unlike initiatives under the MEDA programme, which are agreed on a bilateral basis with each country, these projects are designed for the benefit of all countries covered by the Euro-Med agreement.

“We don't have the money for bigger projects. All we can do is train people to staff these projects,” explained one Commission official.

Regional initiatives of this type only receive 10&percent; of all funding available under MEDA's 2.7-billion-ecu budget, with most individual projects such as schemes for staff exchanges and twinning costing less than 1 million ecu.

Officials are also hopeful that the conference will encourage investment from northern European countries rather than the southern EU member states where there is usually the most interest. One suggested the that fact that the meeting was being held in Austria was in itself “a good sign”.