The European Parliament supports the introduction of risk-sharing instruments in crisis-hit countries
MEPs approved the resolution which backs that stalled regional development projects will be boosted by risk-sharing with private sector in Member States worst hit by the financial crisis. According to the proposal, the EU's financial contribution to the risk-sharing instrument must not exceed 10% of the total 2007-2013 national allocation from the European Regional Development Fund (ERDF) and the Cohesion Fund (CF).
The European Commission's proposal enabling the use of cohesion policy allocations still available to back-up guarantees and loans by financial institutions such as the European Investment Bank (EIB), was backed by MEPs in plenary session. The proposal also got the Regional Development Committee green light in March 2012. In particular, under the proposal, Member States benefiting from EU macroeconomic assistance (currently Ireland, Greece, Portugal and Romania), will be able to ask for part of their EU regional funding allocation to be transferred to the European Commission. The Commission could then conclude a risk-sharing partnership with the European Investment Bank or another financial institution willing to lend to the project sponsors and banks.
The proposed regulation aims to encourage private investors to back "strategic" revenue-generating projects. MEPs also stressed that the Commission must make sure that only projects for which there is a favourable financing decision by the EIB or other financial institution are eligible for financing through the scheme. The text approved that was previously agreed informally by Parliament's negotiators and the Council, needs now to be formally adopted by the Council.
On the other hand, Greece has already stated its interest in the scheme, especially for its highway toll concession projects. MEPs insisted that the scheme must take effect as soon as possible, so as to help stimulate growth and create jobs. Member States wishing to benefit from it will have until 31 August 2013 to make their written requests to the Commission. They will need to specify the programmes and projects to be covered.