WRITTEN QUESTION E-0960/00 by Salvador Garriga Polledo (PPE-DE) to the Commission. Support for venture capital firms in the EU.
13. 2. 2001 EN Official Journal of the European Communities C 46 E/93 Member States may also include nuts in their rural development plans under conditions of Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations (3). (1) OJ L 118, 20. 5. 1972. (2) OJ L 297, 21. 11. 1996. (3) OJ L 160, 26. 6. 1999. (2001/C 46 E/096) WRITTEN QUESTION E-0960/00 by Salvador Garriga Polledo (PPE-DE) to the Commission Subject: Support for venture capital firms in the EU (29 March 2000) Venture capital is the primary means of financing start-up companies and undertakings making new high- risk but potentially highly profitable investments. However, EU venture capital firms are lagging well behind those in the US, whose investment levels are running at almost twice those of their EU counterparts. What action does the Commission consider it could take to encourage investment by EU venture capital firms, to allow them substantially to increase their investments in SMUs in the Union to the point where venture capital investment levels have caught up with those of the US? Answer given by Mr Bolkestein on behalf of the Commission (16 May 2000) The Commission fully shares the Honourable Memberís concern regarding the under-development of venture capital in Europe, although the situation is beginning to improve. In order to improve the current situation and ensure that fast growing companies can find appropriate risk capital, the Commission is committed to accelerate the implementation of the risk capital action plan (1). To achieve this goal strong co-operation from the Member States and the private sector is needed. The European Investment bank (EIB) and the European Investment fund (EIF) also have significant roles to play. The Lisbon European Council stressed the need to remove all the barriers outlined in the risk capital action plan by 2003 ü a clear signal of the political importance now attached to this matter. The Commissionís communication on risk capital (2) was adopted in April 1998. The risk capital action plan attached to the communication was broadly endorsed by the Cardiff European Summit (June 1998) and the Parliament. The action plan lists six sets of barriers to be removed in the Community namely market fragmentation, regulatory barriers, tax barriers, a paucity of good projects, human resources shortages, and cultural barriers. A first analysis of the implementation of the risk capital action plan was made by the Commission in October 1999. To speed up the implementation of the risk capital action plan, the Commission highlighted in this communication some key regulatory measures to be taken in 2000, as well as some examples of good practices to encourage reforms in all Member States. The Commission will also regularly monitor and benchmark the implementation of the risk capital action plan. It should also be noted that the Commissionís E-Europe action plan (November 1999) proposed, as one of tripling the availability of early stage finance by 2003. The final E-Europe action plan will be presented for endorsement to the European Council in Feira in June 2000. its targets, (1) COM(1999) 493 final. (2) OJ C 175, 21. 6. 1999