Brussels eyes start-ups for cash grants
In April, commissioner Günter Verheugen (German social democrat) internally circulated plans for a new seven-year 'Competitiveness and Innovative Framework Programme' starting in 2007 to be supported with GBP 3 billion (EUR 4.2 billion) by the European Investment Fund (EIF) "aimed at backing small ventures, particularly those which are IT-based" for grants between EUR 200,000 and EUR 2,500,000.
"This is a risk strategy by the Commission", says Labour MEP Arlene McCarthy, "but it's the right move as there was nowhere enough investment in small businesses in the past. The amount of EUR 4.2 billion is encouraging as it will act as a catalyst towards attracting more venture capital."
Source: The Sprout, Brussels, May edition, p. 18, "Brussels eyes start-ups for cash grants"
