The sixth meeting of the Ministerial Committee of the EIB's Facility for Euro-Mediterranean Investment and Partnership (FEMIP) took place in Tunis on 26 June, in conjunction with the second meeting of the Euro-Mediterranean ECOFIN Council. Held under the Austrian Presidency of the European Union, it was co-chaired by Mr Mohamed Nouri Jouini, Tunisian Minister of Development and International Cooperation, and Mr Philippe de Fontaine Vive, EIB Vice President responsible for the Bank's operations in the Mediterranean partner countries.

The meeting assessed the results of the reinforced FEMIP and looked at its future prospects.

In his opening address, Mr de Fontaine Vive stated: With new financing operations worth almost EUR 2.2 billion mounted in 2005 to support the modernisation of the Mediterranean economies and the development of job-creating businesses, FEMIP has played a pivotal role in the development of Euro-Mediterranean partnerships.

FEMIP was also particularly active in 2005 on the institutional partnership front, participating in meetings of the Committee of Experts and a host of events which have punctuated the Year of the Mediterranean; on the operational side, through the new agreements entered into with the institutions operating in the Mediterranean area; and on the knowledge partnership front with, in particular, the publication of studies providing a better understanding of the challenges of regional economic development.

Mr Joaquin Almunia, European Commissioner, and Mr Philippe de Fontaine Vive then presented the policy paper prepared jointly by the European Commission and the EIB on FEMIP's activities since the Facility was set up in 2002 and on the operational and institutional improvements to be made to it. Mr Almunia placed special emphasis on strengthening the links with the Wider Europe Neighbourhood Policy and increasing support for the development of the private sector, in his view the only way of helping to create the jobs needed in the region. He also acknowledged FEMIP's key role in improving the business environment by financing high-quality infrastructure to the tune of over EUR 4 billion since 2000.

The Ministers also commended FEMIP's contribution to the financing of capital projects in the region. They put forward a whole series of proposals for stepping up even further FEMIP support for the development of the partner countries, particularly their private sectors, and of the Euro-Mediterranean partnership in the areas for which FEMIP is responsible.

In this connection, the Ministers endorsed the European Commission's policy encouraging greater linkage between Community and FEMIP operations. Intensification of the dialogue between European and Mediterranean countries on operational issues also emerged as a priority and could benefit from more frequent meetings between the representatives of both sides of the Mediterranean to discuss the strategy to be pursued by FEMIP. The Ministers recommended that the efforts to broaden the range of FEMIP's operational instruments be continued.

The content of these guidelines will now be examined in greater detail by the Commission and the EIB with a view to submitting a proposal to the ECOFIN Council in the autumn.

The Ministerial Committee also looked at the conclusions of the workshop on the harmonisation of procurement procedures and policies between the lending institutions and the Mediterranean partner countries held in Luxembourg in November 2005.

On this subject, the Ministerial Committee recommended:

  1. continuing the streamlining of procurement procedures through standardisation within the community of financing institutions and greater involvement of the partner countries. The Ministers noted with satisfaction that FEMIP was prepared to support this initiative and mobilise its technical assistance resources for that purpose;
  2. helping local companies to participate fully in contracts receiving external financing. In this respect, the Ministers welcomed the new measures adopted by the EIB's Management Committee aimed at giving preference to local companies in some cases.

The participants also reviewed the recommendations made by the FEMIP Committee of Experts at its meeting in Vienna in March. These recommendations are aimed at improving the economic climate and encouraging foreign direct investment in the Mediterranean countries. In addition, they suggest possible ways of pursuing the development of the energy markets in the region, bearing in mind that it is one of the EU's leading suppliers, particularly of natural gas.

On the basis of these recommendations, the Ministers agreed on the importance of being able to:

  1. help the Mediterranean partner countries identify the priority reforms to be carried out in order to reduce the administrative burden which discourages both local initiative and foreign direct investment. Accordingly, they called upon FEMIP to support this approach by providing technical assistance;
  2. develop the range of business development services available by mobilising trade associations and chambers of commerce for that purpose. The Ministers felt that this strategy, which ties in with the approach already embarked upon by FEMIP to increase the involvement of civil society in those areas for which it is responsible, could also be promoted through technical assistance services.

With regard to the development of the Mediterranean energy markets, the Ministerial Committee emphasised that FEMIP should continue to play a key role in the region's energy and natural gas supply sector and to maintain its investment in support of renewable energy. It also stressed the need for closer coordination between the main players in the energy sector, i.e. the public authorities, energy companies and financial institutions.

Alongside the meeting of the Ministerial Committee in Tunis, a long-term loan to Enda Inter-Arabe in Tunisian dinars for the equivalent of EUR 750 000 was signed by Ms Essma Ben Hamida, Co-Director of Enda Inter-Arabe, and Mr de Fontaine Vive, for financing microcredit operations in Tunisia. This loan could be accompanied by technical assistance financed by the FEMIP Support Fund from the European Commission's MEDA budget. The project is consistent with the objectives set for FEMIP with regard to risk capital operations in the MEDA region, i.e. development of the private sector and in particular strengthening of the financial sector in that region.

In addition, Mr de Fontaine Vive and Mr Abdelkefi, co-founder of Tuninvest Finance Group (TFG), signed an agreement for a EUR 10 million EIB participation in the creation of Maghreb Private Equity Fund II. Focusing on investment in medium-sized companies in Algeria, Morocco and Tunisia, the fund was launched by TFG. This private equity fund, which aims to raise EUR 100 million, will target a limited number of sectors in order to create regional groups.

This operation will promote foreign direct investment in the countries concerned and help to develop the region's financial sector.

The Ministerial Committee's next meeting is scheduled to take place in Cyprus in May 2007. In the meantime, FEMIP will hold, in conjunction with the authorities in Monaco, a forum on the development of trans-Euro-Mediterranean transport networks during the final quarter of 2006. Another forum will be held during the first quarter of 2007 on remittances by Mediterranean migrants, as a follow-up to the study published by FEMIP on this subject. Other issues to be dealt with by FEMIP in 2006-2007, as decided by the Ministerial Committee, are energy, tourism, microfinance, technology transfers and vocational training.