REPORT on the proposal for a decision of the European Parliament and of the Council amending Council Decision 2000/819/EC on a multiannual programme for enterprise and entrepreneurship, and in particular for small and medium-sized enterprises (SMEs) (2001-2005)

27.4.2005 - (COM(2004)0781 – C6‑0242/2004 – 2004/0272(COD)) - ***I

Committee on Industry, Research and Energy
Rapporteur: Britta Thomsen

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a decision of the European Parliament and of the Council amending Council Decision 2000/819/EC on a multiannual programme for enterprise and entrepreneurship, and in particular for small and medium-sized enterprises (SMEs) (2001-2005)

(COM(2004)0781 – C6‑0242/2004 – 2004/0272(COD))

(Codecision procedure: first reading)

The European Parliament,

–   having regard to the Commission proposal to the European Parliament and the Council (COM(2004)0781)[1],

–   having regard to Article 251(2) and Article 157(3) of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C6‑0242/2004),

–   having regard to Rule 51 of its Rules of Procedure,

–   having regard to the report of the Committee on Industry, Research and Energy (A6‑0118/2005),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council and Commission.

Text proposed by the Commission	Amendments by Parliament
Amendment 1 ARTICLE 1, POINT 1 Article 7, paragraph 1(Decision 2000/819/EC)
(1) In Article 7(1), the financial reference amount of EUR 450 million is replaced by EUR 531.5 million.	(1) In Article 7(1), the financial reference amount of EUR 450 million is replaced by EUR 538.5 million.
Justification
The budget for the original multiannual programme was EUR 450 million over five years, i.e. EUR 90 million per year. The budget for 2004 (the first financial year adjusted for enlargement) was EUR 91 million. Given that this is an extremely important and smoothly operating programme in a key area of policy, the annual budget for the extension of the programme should be at least the equivalent of the appropriation for 2004.

• [1]  Not yet published in OJ.

EXPLANATORY STATEMENT

The Commission's proposal and justification for increasing the budget

The background to the proposal to extend the multiannual programme for enterprise and entrepreneurship, and in particular for small and medium-sized enterprises (SMEs), by one year to 31 December 2006 is that the functions of the programme will in future be performed by its successor programme, the 'Framework Programme for Competitiveness and Innovation' (CIP), which is planned to run from 2007-2013 to coincide with the financial perspective. The time-frame will therefore also coincide with the 7th Research Framework Programme, which creates scope for better coordination between the programmes. To bridge the gap between the existing and the new framework programme, the Commission proposes extending the existing framework programme by one year and raising the total budget by € 81.5 million, equalling the planned expenditure for 2006.

Your rapporteur believes that this extension of the existing multiannual programme is necessary and should be supported. Your rapporteur finds, however, that the proposed budget is inadequate. It should be remembered that the multiannual programme for enterprise and entrepreneurship is the key element in the Community's policy to promote entrepreneurship and support innovation in European SMEs. Moreover, the original five-year appropriation was for € 450 million, i.e. € 90 million per year, and the budgeted amount for 2004 was € 91 million. As the programme shows no sign of a low take-up rate of appropriations - on the contrary, the take-up rate is increasing despite it being a 'front-loaded' programme - the Commission's proposed budget for the extended programme would seem unnecessarily conservative. Your rapporteur therefore proposes that the budget be increased to € 91 million, which is equal to the budgeted amount for 2004.

Several factors justify an increase in the budget. Firstly, it is a multiannual programme which both users and external evaluation experts regard as smoothly operating and achieving its objectives. Secondly, it is important to maintain and extend aid to entrepreneurs and SMEs in Europe because they are the backbone of Europe's economy and their continued growth is a condition of achieving the Lisbon objectives. In general, therefore, the budget for such aid should be increased. Finally, the external evaluation report carried out by INFYDE Consultants (SEC(2004)1460) stresses that the financial instruments in the existing programme in large measure cover the needs of the new Member States. Restricting funds will therefore impede the integration of those countries into the European economy.

Transition to CIP

The experience gained during implementation of the existing programme must be used in preparations for the new CIP programme. The above-mentioned evaluation report emphasises that there must be better coordination between the new programme and the Community's Structural Funds and the 7th Research Framework Programme in order to achieve the necessary synergies. This presupposes a greater degree of coordinated thinking on regional development, research and the development of businesses, which establishing partnerships between local and regional players can help achieve.

Awareness of the existing multiannual programme has been lacking. As regards the new programme, several initiatives should be taken to raise awareness of the various instruments under the programme, particularly in the new Member States.

At the same time, your rapporteur would point out that the current programme has still not brought about a sufficient strengthening of the internal market. greater emphasis on cross-border business activity in the new programme. Such activity can be achieved, for example, by promoting contacts between capital providers involved in the programme in various Member States.

According to the Commission's action plan (COM(2004)0070), the EU is not exploiting its entrepreneurial potential. The new programme must therefore place greater emphasis on the promotion of entrepreneurship. In that connection, it is important to create better conditions so that particular groups such as women, ethnic minorities and immigrants are helped to start and run their own businesses. One way of achieving this is to facilitate access to micro-loans.

At the same time, the new programme should address both entrepreneurship and established businesses within the social economy.

PROCEDURE

Title	Proposal for a decision of the European Parliament and of the Council amending Council Decision 2000/819/EC on a multiannual programme for enterprise and entrepreneurship, and in particular for small and medium-sized enterprises
References	COM(2000)0781 – C6-0242/2004 – 2000/0272(COD)
Legal basis	Articles 251(2) and 157(3) EC
Basis in Rules of Procedure	Rule 51
Date submitted to Parliament	14.12.2004
Committee responsible   Date announced in plenary	ITRE 14.12.2004
Committee(s) asked for opinion(s)   Date announced in plenary	BUDG 14.12.2004
Not delivering opinion(s)   Date of decision	BUDG 21.4.2005
Enhanced cooperation	No
Rapporteur(s)   Date appointed	Britta Thomsen 27.1.2005
Previous rapporteur(s)
Simplified procedure
Legal basis disputed			/
Financial endowment amended			/
European Economic and Social Committee consulted
Committee of the Regions consulted
Discussed in committee	31.3.2005	26.4.2005
Date adopted	26.4.2005
Result of final vote	for: against: abstentions:			40 0 0
Members present for the final vote	Ivo Belet, Šarūnas Birutis, Jan Březina, Philippe Busquin, Jerzy Buzek, Joan Calabuig Rull, Pilar del Castillo Vera, Giles Chichester, Lena Ek, Nicole Fontaine, Adam Gierek, Umberto Guidoni, András Gyürk, Fiona Hall, David Hammerstein Mintz, Rebecca Harms, Romana Jordan Cizelj, Werner Langen, Anne Laperrouze, Pia Elda Locatelli, Eluned Morgan, Reino Paasilinna, Pier Antonio Panzeri, Umberto Pirilli, Miloslav Ransdorf, Vladimír Remek, Teresa Riera Madurell, Paul Rübig, Andres Tarand, Britta Thomsen, Catherine Trautmann, Claude Turmes, Nikolaos Vakalis, Alejo Vidal-Quadras Roca
Substitutes present for the final vote	Malcolm Harbour, Edit Herczog, Erika Mann, Lambert van Nistelrooij, John Purvis, Hannes Swoboda
Substitutes under Rule 178(2) present for the final vote
Date tabled – A5	27.4.2005					A6-0118/2005
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