MEPs gave the green light for EU funding to help Europe's unemployed start up small businesses. Credit will be made available to budding entrepreneurs through a "microfinance facility" funded partly from the existing Progress programme and partly from unallocated money in the EU budget.

The EU Micro-finance Facility for business start-ups will be funded partly by its Progress programme for employment and social solidarity and partly by unallocated margins in the EU budget.  After the agreement on this issue reached between MEPs in the Employment and Social Affairs Committee and the Spanish Presidency, now the decision has been endorsed by the full Parliament by 511 votes to 95, with 11 abstentions.

In December, Parliament approved the creation of a "European Progress Microfinance Facility" to make it easier for people who have lost or risk losing their jobs to get credit to start up their own businesses.  MEPs agreed to make €100 million available for the facility over four years.

However, the Commission had proposed that the facility be funded from the Progress programme, a programme for employment and social solidarity, which is also targeted at the most vulnerable groups, while MEPs in the Employment and Social Affairs Committee wanted fresh money.

Under the final compromise, €60 million will come from the Progress programme and €40 million from unallocated margins in the EU budget. For 2010, Parliament and Council have already agreed to release €25 million from the 2010 EU budget.

The legislation is scheduled to come into force the 20th day following its publication in the EU Official Journal.