At the opening of the European Investment Bank's conference held in Casablanca, Morocco, on the theme of Enterprise development - a key dimension of Morocco's economy, EIB Vice-President Philippe de Fontaine Vive called for further private sector development in the Mediterranean Partner Countries (MPCs) via the Bank's Facility for Euro-Mediterranean Investment and Partnership (FEMIP), which forms part of his portfolio of responsibilities.

Mr Abderrazak El-Mossadeq, the Prime Minister's Secretary of State with delegated responsibility for economic affairs and modernisation, welcomed the participants on behalf of the Moroccan Government and voiced satisfaction that this conference was being held at a time when his Government was committedly pursuing a policy of bringing Moroccan industry up to first-world standards. The patronage of His Majesty King Mohammed VI bore witness to the significance of the event for Morocco.

The conference has been organised in close cooperation with the Confédération Générale des Entreprises du Maroc (CGEM) and through the efforts of its President, Mr Hassan Chami.

Opening the discussions, Mr Abderrazak El-Mossadeq outlined the measures taken by the Government in connection with the launch of Morocco's catch-up programme. These highly specific measures are intended to help prepare Moroccan businesses to meet international competition in the run-up to the creation of a free trade area between Europe and the partner countries in 2010. Alongside FEMIP, the European Commission also stands ready to support this process, as announced by Ambassador Sean Doyle, Head of the European Commission's Delegation in Morocco. Following a direct overview from business people active in Morocco, Mr Jean Lemierre, President of the EBRD, drew on the experience of European transition countries to stress the importance of modernising the economies of the countries concerned and introducing the necessary structural reforms in order to underpin growth and attract foreign investment.

Mr Théodore N'Kodo, Vice-President of the African Development Bank (AfDB), described the banking and financial tools and policies that it deploys to assist the private sector. Mr Chorfi, Director of the Moroccan Treasury, explained the current and forthcoming reforms and the prospects for a growth-targeted policy. This approach also involves Morocco's banking sector, where Mr Chaïbaïnou, Director General of the Groupement Professionnel des Banques Marocaines (GPBM), and Mr Amyn Alami, President of the Executive Board of the Caisse de Dépôt et de Gestion du Maroc (CFG Group), described the rapidly changing landscape as players gird themselves for the full blast of international competition.

Against the backdrop of the conference, the CDG (Caisse de Dépôt et de Gestion) and the EIB signed a statement of intent to work together to explore the setting-up of an new investment fund for encouraging the development of structured and professional mezzanine financing (1) for Moroccan firms, while encouraging fresh investment and financial synergies in the Mediterranean Basin.

As Mr Philippe de Fontaine Vive commented in his closing address, the Bank has lent a total of EUR 3.7 billion since March 2002 in operations from which nearly all the Mediterranean Partner Countries (MPCs) are benefiting. The politically strained situation in the region renders it more than ever necessary to nurture Euro-Mediterranean partnership and economic development in the region. In this context, the enhanced FEMIP represents a key instrument for achieving close cooperation among the partners concerned.

FEMIP involves the MPCs in its activities through its Ministerial Committee and its preparatory meetings of experts, as well as by establishing regional offices (in 2003 an office was opened for the Mashreq in Cairo, with an office for the Maghreb set to follow in 2004). It also aims at stepping up long-term lending and developing new products and technical assistance. For 2004, FEMIP is lining up financing operations totalling some EUR 2 billion.

More than 200 prominent figures from the worlds of government, business and banking participated in this inaugural EIB Conference dedicated to the financing of SMEs in the Mediterranean, an event which Mr Philippe de Fontaine Vive indicated would be paralleled by similar ones both within the Union and in the other Partner Countries. These meetings provide a forum for expounding the various techniques used by the EIB in its FEMIP operations. They also afford an opportunity to talk to business leaders and government representatives, so making for a clearer understanding of the constraints affecting FEMIP and allowing its instruments and operations to be fine-tuned accordingly. The next Conference will be held in London on 22 January 2004.

The European Council of 12/13 December 2003 decided to strengthen the EIB's Facility for Euro-Mediterranean Investment and Partnership (FEMIP), in the wake of the Facility's full attainment of the objective set by the European Council's resolution of March 2002.

The breakdown of FEMIP's operations since its creation clearly reflects its top priority, with more than one third of its operations aimed at directly promoting the growth of private businesses, whether through foreign direct investment, joint ventures arising from cooperation between MPC promoters or financing for SMEs.

At the same time, FEMIP has placed emphasis on schemes relating to infrastructure, water, the upgrading of healthcare facilities and the remodelling of education systems. Finally, FEMIP has furnished assistance for populations stricken by natural disasters.

FEMIP was set up in response to the conclusions of the Barcelona European Council (15 and 16 March 2002) and the Valencia Euro-Mediterranean Conference (22 and 23 April 2002). Its objective is to help the Mediterranean Partner Countries (MPCs) to meet the challenges of economic and social modernisation and enhanced regional integration in preparation for the free trade area scheduled to be established between Europe and the MPCs by 2010.

FEMIP represents a major turning point in financial and economic cooperation between the Union and the MPCs. Its operational priorities are:

  • increased involvement of the region's countries through an annual meeting of the Ministerial Committee and through the opening of regional offices in the Mashreq and Maghreb;
  • priority focus on private sector development as a generator of wealth and jobs;
  • promoting investment in human capital;
  • greater technical assistance for the design of quality projects and the economic reform process in the MPCs;
  • providing innovative financial products and risk capital; ¨ increasing the annual volume of financing to EUR 2 billion.

(1) flexible financing in the form of subordinated or convertible loans. Remuneration for the quasi-equity funds so provided is geared to the profitability of the enterprise itself or to other indicators of its activity.