1. Armando MELONE DG Enterprise and Industry European Commission SMEs Access to Finance Milano 13-15 December 2011

2. Overview Challenges EU Available Financing for SMEs The role of Enterprise Europe Network EU developments in SMEs access to finance

3. Challenges Main problems: - Current financial situation - The funding gap - Risk aversion in Europe - Lack of critical mass for Venture capital in Europe How to act: - Improving SMEs’ access to finance: competitiveness, innovation and growth = policy measures - dedicated instruments to reduce market gaps which prevent SMEs from achieving their full potential = finance

4. The enterprise lifecycle

5. EU Available Financing for SMEs National and Regional Financial Support Direct funding: grants Indirect funding: loan and equity for investments (CIP financial instruments) Support with the Structural funds: JEREMIE EIB Loans

6. EU available financing for SMEs How do the CIP financial instruments support SMEs in practice? Bank Venture capital Fund European Union budget SMEs Invests Lends Provides funds Guarantee Society Counter or Co-Guarantees

7. www.access2finance.eu EU Available Financing for SMEs

8. SMEs contact points The role of Enterprise Europe Network The EEN in Europe It helps small business to make the most of the EU marketplace, working through local business organisations, to help SMEs a. Develop business in new markets b. Source or license new technologies c. Access EU finance and EU funding 600 member organizations across the EU and beyond (chambers of commerce and industry, technology centres, universities and development agencies) The EEN in Med The Commission is extending the EEN to southern Mediterranean countries 8 contact points in place in Tunisia, one in Egypt, one in Israel Moroccan branches to be set up soon The new focus on Africa is conceived to be of mutual benefit for SMEs in the EU and in Mediterranean neighbour countries

9. EU developments in SMEs access to Finance Recent regulatory measures the Commission is presenting a new EU venture capital framework creating a genuine internal market for VC funds a legislative proposal amending the Accounting Directives was presented in order to simplify and improve accounting rules for SMEs (October 2011) the Commission presented a proposal revising the Transparency Directive in order to reduce the regulatory burden for small issuers (October 2011)

10. EU developments in SMEs access to Finance Actions The experience of the Finance Forum and the set up of national SME Finance Fora The Commission will consider measures addressing the issue of SMEs risk weighting in the realm of the implementation of Basel III accords In order to better assess the impact of measures in support of SMEs' finance and the new capital requirements applicable to banks, the Commission is committed at improving the monitoring of SME lending The Commission will reinforce the financial advisory capacity of the EEN in order to provide SMEs with better information about the different sources of finance All the information on EU finance will be made available through a single, multilingual online portal covering the different sources of EU finance available for SMEs the Commission will reinforce the guarantee and venture capital facilities for SMEs in the two new programmes 2014-2020, the Programme for the Competitiveness of Enterprises and SMEs (COSME) and Horizon 2020

11. DG Enterprise and Industry future activities on Med and Africa The EU Commission has included the European Neighbourhood Policy partners in the East and the South as well as markets generating strong economic growth (emerging markets in Asia, Africa and Latin America) among the priority markets in a communication recently adopted (November 9th) The EU is committed at developing and strengthening schemes for business-to-business cooperation between the EU and countries in the Southern Mediterranean Establishment of the SME Finance Forum on Africa as an important first step in the new approach to building bridges between European and African businesses by means of a strengthened and permanent dialogue Signature of a Memorandum of Understanding between African Union and European Union, where the parties commit to supporting SMEs, helping them to prosper in an economic environment conducive to business investment, and to improving the framework conditions for them.