1. 3rd Danube Financing Dialogue Which financing Instruments are offered to project promoters in the Danube Region? Bucharest, 30 October 2013
Bernard Snoy
International President,
European League of Economic Cooperation (ELEC)
Professor, Catholic University of Louvain (Belgium)

2. The wider policy framework
Economic Strategy 2020 : smart, sustainable and inclusive growth
EU Support Programmes for SMEs , with specific roles for European Commission and IFIs
Mitigating the impact of the new post-crisis prudential and regulatory environment.
EU Strategy for the Danube Region
IFI Coordination and Western Balkans Investment Framework.

3. European Support Programmes for SMEs
Thematic funding opportunities
Structural funds
Financial Instruments
Support to the internationalisation of SMEs

4. Thematic Funding Opportunities
Environment, energy and transport
Innovation and Research
Education and Training
Culture and Media

5. Environment, Energy and Transport
LIFE+ , in particular, nature and biodiversity
Competitiveness and Innovation Framework Programme (CIP):
Eco-innovation part of the Entrepreneurship and Innovation Programme (EIP)
Intelligent Energy Europe Programme (IEE)
Information and Communication Technologies Policy Support Programme (ICT-PSP)
MarcoPolo II Programme aimed at reducing road congestion and enhancing intermodality.

6. Innovation and Research
7th Framework Programme for Research and Technological Development
Promoting SME participation in the « cooperation » programme
« ideas » programme open to SMEs
Human potential in research and technology in the « People » programme
« Research for the benefit of SMEs » in the « Capacities » programme

7. Innovation and Research (2)
List of SMEs National Contact Points (NCPs)
Competitiveness and Innovation Framework Programme (CIP): EIP and ICT-PSP
Eureka – A network for market oriented R&D
Risk Sharing Instrument : pilot guarantee scheme of the EIF,EIB & EC, aiming to improve access to debt finance for innovative SMEs and Small Mid-Caps in supporting their RDI projects.

8. Education and Training
Integrated Action Programme in Lifelong learning : the Leonardo da Vinci programme is of most direct relevance to enterprises, since it supports innovative trans-national initiatives for promoting the knowledge, aptitudes and skills necessary for successful integration into working life.
Erasmus for young entrepreneurs : practical and financial assistance for new entrepreneurs who wish to spend some time in an enterprise in another EU country and thus learn from experienced entrepreneurs.

9. Structural Funds
European Regional Development Fund (ERDF): largest Community financial instrument benefiting SMEs.
European Social Fund : support for anticipating and managing economic and social change, with a number of opportunities for supporting SMEs
Rural Development Fund : improving the competitiveness of SMEs in agricultural and forestry sectors and building local capacity for employment and diversification.
In the programming period , Common Strategic Framework, covering the coordination of the European Structural and Investment Funds (ESIF)

10. COSME
COSME is the EU programme for the Competitiveness of Enterprises and SMEs, running from 2014 to 2020, with a planned budget of € 2.3billion.
COSME will support SMEs in the following areas :
Better access to finance for SMEs
Access to markets
Supporting entrepreneurs
More favourable conditions for business creation and growth

11. Financial Instruments
Competitiveness and Innovation Framework Programme (CIP) with instruments managed by the EIF:
High Growth and Innovative SME Facility (GIF) aimed at increasing the supply of equity for innovative SMEs
SME Guarantee Facility
Capacity Building Scheme, enhancing the capacity of financial intermediaries
Risk Sharing Instrument : pilot guarantee scheme to support RSI projects
European Progress Microfinance Facility for Employment and Social Inclusion (EPMF)

12. Financial Instruments
Joint European Resources for Micro and Medium Enterprises (JEREMIE)
Joint Action to Support Micro-finance Institutions in Europe (JASMINE)
European Investment Fund (EIF) own instruments
European Investment Bank (EIB) loans

13. Support for the internationalisation of SMEs
Instrument of Pre-Accession Assistance (IPA and IPA II)
EU/EBRD SME Finance Facility: through financial intermediaries, local commercial banks, micro-business banks, equity funds and leasing facilities
Turn Around Management (TAM) programme managed by the EBRD
EIB loans for SMEs in Eastern Neighbourhood
Neighbourhood Investment Facility (NIF)

14. Impact of the post-crisis prudential and regulatory environment
Bank financing is becoming more expensive and long term loans more restricted with Basel III and Solvency II rules, forcing borrowers to seek for alternative financing mechanisms outside the banking sector.
Riskier borrowing segments(SMEs, smaller midcaps) are the most vulnerable to tighter bank lending policies.
The sovereign debt crisis has led to widely differing conditions across member states for enterprises that cannot raise capital internationally .
Spreads have also increased between loans granted to larger and smaller companies
Excessive concentration in the banking sector.

15. Mitigating the impact of this negative environment for SMEs.
Favourable capital requirements introduced in CRD IV for SME loans
Mechanisms dampening the volatility of Solvency II capital requirements, which penalise long term assets.
Extension by the ECB to SME Loans of the list of eligible assets, which can be used as collateral.
Public banks and government backed schemes at EU level (EIB/EIF) in order to provide SMES with access to cheaper lending.
Developing non-bank financing options for midcaps/SMEs (Private placement of midcap bonds, midcap and SME equity market, Securitisation of midcap/SME loans, etc.)

16. EU Strategy for the Danube Region 8th priority area under the Action Plan : Supporting the competitiveness of enterprises
Fostering cooperation and exchange of knowledge between SMEs, academia and the public sector in areas of competence of the Danube Region, e.g. through developing clusters, technology parks cand linking existing networks : e.g. six new scientific clusters focusing on water, land & soil; bio-energy; air; data exchange & harmonization; and smart specialisation
Improving business support to strengthen the capacities of SMEs for cooperation and trade: business support agencies, Danube Chambers of Commerce Association, Danube Region Business Forum, Vienna Economic Forum, etc.
Supporting enterprises through high performing training and qualification schemes.
Prioritising the effective implementation of measures provided for under the Small Business Act for Europe.

17. 8th priority under EU Danube Strategy
Improving the competitiveness of rural areas and in particular of the agricultural sector.
Eliminating cross border barriers and bottlenecks to people and business: Seamless Europe for a livable Danube Region
Improving framework conditions for SMEs in areas where competitive infrastructure is missing.
Making the most of what is already there : aligning various existing funding sources for financial, technical or other forms of assistance to SMEs and creating synergies.