Will Bulgarian business be able to take advantage of schemes funded by European programmes this year? This question undoubtedly interests many entrepreneurs, after the opportunities to negotiate under the old programming period have already expired, and the parameters of the new one are still being agreed with the European Commission. It is hoped that in the fall of 2014 the will be opened first procedures under the Innovation and Competitiveness will be opened. And if we trust the promises of the people in power, the companies will no longer meet the cumbersome bureaucracy, confusing information and extremely slow payments marking the seven-year life of the old Competitiveness.
Such developments were recently promised by the Deputy Minister of Economy and Energy Yunal Tassim. He presented a schedule according to which the updated draft programme for businesses, finalized in the last days of April, will be subject to public consultation by the end of May. Then, in June, the document will be sent for consultation in Brussels. And if all goes as planned, in September till October everything should start.
From the words of Tassim it became clear that the project Innovation and Competitiveness is based on two guiding document – the National Strategy for the Promotion of SMEs and the Innovation Strategy for Smart Specialization. „The new Operational Programme responds to the priorities of the Partnership Agreement with the EU on sustainable and smart growth, said the deputy minister. It will seek synergies between other funding instruments, national budget, National Innovation Fund, etc. We have proposed a flexible approach that meets the views and attitudes of the companies. We have achieved a balance between quick and immediate effect as technological innovation, internationalization and international standards and certifications, and those with long-term impact – the development and commercialization of innovations. What also be taken in account is the need of integrated regional investments to be targeted at the most disadvantaged regions not only in the country but also in the European Union, such ass the North-West one in Bulgaria.“
The plan of the government is first to open the scheme for technological modernization of small and medium enterprises. „In the best of cases, by the end of the year we can think of opening one or two new schemes that are associated with promoting innovation and energy efficiency,“ said Tassim.
Betting on technological modernization definitely makes sense. In the previous programming period companies took great interest in such measures, but due to limited resources many of them remained in the reserve lists, though their projects were approved. Now, these same projects can get a flying start in the new OP and promptly receive funding. That’s why estimates show that by the end of 2014 at least 140 million lev can be absorbed.
One should not miss the fact that the businesses can continue to take advantage of the tools of the JEREMY fund by the end of 2015. This way, the huge problem of providing financing for the projects will largely be solved which will further accelerate the absorption of the money from the Innovation and Competitiveness. Yet it is precisely the lack of own funds that hindered the companies in applying for EU funds in the period 2007-2010. So the prerequisites for serious success now are all there as long as one can use them.
In fact, even if all these conventions are met meet and the funding schemes are to be opened in the autumn, some companies will not be able to take advantage of them. It’s about the beneficiaries and their affiliates, who have already reached the limit of state aid under the de minimis rule for the last three years. That’s why the Confederation of Employers and Industrialists insist that most schemes should not be listed under this regime or ask the money to be awarded as a regional rather than state aid. We should not forget, however, that the de minimis rule is introduced so that EU money may not concentrate in the same companies, and attempts to circumvent it can lead to unequal position between businesses.
Another problem, according to businesses is the requirement that projects related to improving energy efficiency must lead to 25% savings. So far, the requirement took about 10% savings. The change will definitely impede the implementation of such measures and therefore companies offer that this requirement should not apply to the whole enterprise, but only for the specific activity which is part of the project.
However, the biggest nuisance about the Innovation and Competitiveness is related to its promotion. The scheme planned target ads, publications, forums and other information spreading is just like that of the previous programming period, although it was completely ineffective. So now, instead of new campaigns on the funding opportunities and deadlines, the media will continue to broadcast the old videos of the „Competitiveness“ programme.
The BANKER
