A plan to create a micro-finance to help people at risk of losing their jobs to start their own micro-enterprises was backed by the Employment and Social Affairs Committee on Thursday, but MEPs rejected the funding arrangements proposed by the European Commission.

Employment and Social Affairs Committee's report proposed creating a specific budget line for the new facility, to enable people at risk of losing their jobs and the most disadvantaged to start their own micro-enterprises. Funding for this facility should amount to €150 million. The Employment and Social Affairs Committee adopted this first-reading report with 41 votes in favour, 4 against and no abstentions.

The Commission had initially proposed that the micro-credit facility be allocated €100 million from the Progress programme for employment and social solidarity. Under the 2006 inter-institutional agreement, the Progress programme had in fact been allocated an additional €114 million, at Parliament's request. This Commission proposal was rejected by 41 votes to 4, with 1 abstention.

MEPs also asked the Commission to refrain from adopting specific financial measures concerning the Progress programme in 2010, until the legislative process on the micro-finance facility is concluded. This resolution was adopted with 42 votes in favour, one against and one abstention.

An informal trialogue with the Council is scheduled for 16 November, with a view to achieving an agreement at the first reading.