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Stimulating the competitiveness of SMEs, fostering and promoting eco-innovation, energy efficiency and renewables, and accelerating the process leading to a fully-fledged information society are the objectives of the Competitiveness and Innovation Framework Programme 2007-2013.
Europe's ambition to become the world's most dynamic knowledge-based society (as defined by the 2000 Lisbon Summit) needs a strong focus on competitiveness and eco-innovation. In order to reach these goals, the EU has to achieve a better coherence and synergy of its policies and policy instruments.
On 6 April 2005, the Commission presented its proposal
for a seven-year framework programme for competitiveness and innovation. More than four billion euro was planned for initiatives during the next budgetary period 2007-2013.
The new framework programme merges several already existing measures into one comprehensive programme to boost the competitiveness and productivity of European businesses (especially SMEs) while at the same time proposing support for eco-innovation and sustainable energy.
The CIP consists of three sub-programmes:
The CIP will add a new risk capital instrument to the existing instrument fostering SME start-ups. This non-grant-based instrument is aimed specifically at innovative and high-growth SMEs, which need capital at their crucial growth phase.
The Competitiveness and Innovation Programme is complementary to the 7th framework programme for research (FP7). It will be open for participation to members of the EEA, candidate countries, countries of the western Balkans, and, under certain conditions, to countries participating in the EU’s neighbourhood policy.
On 13-14 March 2006, the Competitiveness Council reached an agreement on a "partial general approach" excluding issues related to budget dimension of the CIP. The Council expressed worries about the complementarity of CIP with FP7 and the EU's structural funds and highlighted the need for more visibility for eco-innovation.
The Council adopted the CIP on 12 October 2006. The total envelope for the seven-year period amounts to 3.2 billion euros.
Business federation UNICE welcomed the CIP proposal, highlighting the simplification of Community programmes and the fact that competitiveness "is taken as the overriding theme that must inspire and drive all the sub-programmes". UNICE reiterated its demand that for the financial perspective 2007-2013 "a sufficient allocation of resources to competitiveness-enhancing programmes should be the priority objective".
Eurochambres (the Association of European Chambers of Commerce and Industry) appreciated that "SMEs are to be placed at the core of this strategy". In order to improve the communication concerning this programme to SMEs, Eurochambres proposed working "in close co-operation with Chambers in the provision of support services for enterprises".
In a press release on 4 April 2006, the European Environmental Bureau (EEB), the European Association of Craft, Small and Medium-sized Enterprises (UEAPME) and the European Committee of Environmental Technology Suppliers Assocations (EUCETSA) warned in a letter that a strong reduction in the budget for eco-innovation as a result of the Financial perspective compromise in December, will "send a wrong message about the importance of eco-innovation".