BUSINESSEUROPE: Mission and viewpoint on Financial Instruments

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BUSINESSEUROPE Mission and viewpoint on
Financial Instruments
J. Valente
03-02-2009
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BUSINESSEUROPE Who are we?

• Confederation of European Business
• 40 members from 34 countries
• Representative of more than 20 million small,
  medium and large companies
• Social Partner
• Mission
• Actively promote and represent business in Europe
• Advocate a favourable and competitive business
  environment to foster sustainable economic growth
• Purpose
• Influence EU policies to create a
  business-friendly environment

J. Valente
03-02-2009
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BUSINESSEUROPE Policy Priorities

1. Implement the reforms for growth and jobs
2. Integrate the European market
3. Govern the EU efficiently
4. Shape globalisation and fight all kinds of
   protectionism
5. Promote a secure, competitive and
   climate-friendly energy system
6. Reform European social systems to respond to
   global challenges

J. Valente
03-02-2009
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BUSINESSEUROPE Structure
J. Valente
03-02-2009
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Cohesion Policy

• Priorities
• Foster Innovation and productivity
• Contribute to the development of a
  business-friendly climate
• Support the adaptability of workers and companies
• Adapt education and training systems
• Encourage cross-border cooperation
• Means
• EU budget
• Public-private partnerships
• Involvement of business in EU programmes
• Financial Engineering for regional development

J. Valente
03-02-2009
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JEREMIE

• JEREMIE represents a relevant opportunity in the
  current context of dramatic shortage of financing
  for companies
• Sustainable financing over the long term it
  transforms grants into recyclable forms of
  finance ?revolving funds
• High leverage effect
• Encourages move away from grant dependency
• Risk-sharing with the private sector

J. Valente
03-02-2009
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JEREMIE (II)

• However, implementation outcomes have been
  disappointing
• Lack of information
• Difficult and time consuming procedures
• Dependent on how business-friendly a public
  authority is
• Public authorities may be reticent to use their
  OPs to finance these techniques.

J. Valente
03-02-2009
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European Network of Financial Instruments

• As part of its European Economic Recovery Plan,
  the Commission proposed to
• further promote and develop Financial Engineering
  projects
• change the legal provisions of Financial
  Instruments
• Fundamental to understand the precise reasons
  why the financial instruments do not seem to work
• In the case of JEREMIE, SMEs are the ultimate
  beneficiaries
• Need to involve the business community

J. Valente
03-02-2009