17. 12.09:
Micro-finance fund for the unemployed 'progresses'
A Commission plan to create a micro-finance facility to help people at risk of losing their jobs to start their own micro-enterprises has been backed in principle by the European Parliament although the funding arrangements remain undecided. Under this initiative, the Commission had proposed to make EUR100m in support available to provide eligible candidates with loans of up to EUR25,000. This budget was to be sourced from a reallocation from the Progress fund for employment, social affairs and equal opportunities.
The Parliament Employment and Social Affairs Committee's (who has wanted to grant an extra EUR50m increase to the venture) have given their agreement but are holding off on any definitive decision in regard to the use of the Progress fund, pending investigation of the possibility of establishing a separate budget line for these purposes. MEPs have also called for clarification that the future fund would not replicate existing SME liquidity initiatives such as Jeremie and Jasmine at EU-level, or indeed, national, regional and local level equivalents.
