Auto bailouts 'will benefit SMEs', says EU official 

Speaking ahead of the European Business Summit (26-27 March), Françoise Le Bail, deputy director-general at the EU executive's enterprise department, rejected suggestions that efforts to boost industry were being targeted at large businesses rather than boosting SMEs. 

"When the member states invest in, for example, the automotive sector, they are investing not just in big companies but they are also supporting the great numbers of SMEs which work in this particular area." 

"This is one of the things we want to ensure: when there is support for a sector, it should benefit not just large companies but also smaller suppliers," said Le Bail. 

She said the ongoing financial crisis had hit SMEs hard, but that measures were in place to channel funding to small businesses. 

"We saw that big companies were initially suffering from the crisis, but now SMEs are affected by access to finance and by the downturn for larger companies. A lot of SMEs are suppliers to big companies and it is a very difficult time for all." 

The comments come as French Economy Minister Christine Lagarde announced that her government was working on proposals to save niche carmaker Heuliez, which has run into difficulty, putting 1,000 jobs at risk. France's bailout of its national auto industry has been steeped in controversy amid accusations of protectionism. 

Le Bail said the European Investment Bank (EIB) was doubling its funding for small businesses to €30 million and a number of other measures, including reduced VAT for labour-intensive services, were being introduced under the Small Business Act. 

She acknowledged that EIB funding had not been released quickly enough, but said the bank is now in a position to released loans more efficiently. 

"In 2008, the EIB was rather slow in getting money to SMEs but now they are coming to terms with the machinery and they will distribute the money. I think the start was difficult, but now it is improving."

The Commission's SME envoy added that reducing red tape would also ease the burden on small companies and help them compete in challenging times. 

To read the interview in full, please click here.