Commission is launching ESCALAR, a new investment approach, developed together with the European Investment Fund (EIF), that will support venture capital and growth financing for promising companies, enabling them to scale up in Europe and help reinforce Europe’s economic and technological sovereignty. It will provide up to €300 million aiming to increase the investment capacity of venture capital and private equity funds, triggering investments of up to €1.2 billion, or four times the original investment, to support promising companies.
With the launch of ESCALAR, the Commission is delivering on one of the actions announced in the new SME strategy to improve access to finance for SMEs. This initiative is particularly relevant in the difficult economic situation SMEs are facing currently due to the coronavirus outbreak. It will support innovative companies during, and after, the crisis, to ensure that Europe can develop and stay at the helm of global technological developments and accelerate its economic recovery.
Commissioner for Internal Market Thierry Breton said: “Commission is deploying all tools at its disposal to help companies overcome the coronavirus crisis. Today, we are strengthening our support to the many promising European companies to ensure they can continue to develop and grow in Europe. With ESCALAR, we are helping unlock significant additional private investments to support the creation of tomorrow’s market leaders.”
EIF Chief Executive Alain Godard said: “Scale-ups need to find growth finance to take their businesses to the next level. By improving the financing environment, more EU scale-ups may choose to stay in Europe to continue their growth, which is even more crucial now in this time of crisis, when growth companies may need additional support from their investors. The ESCALAR Pilot can help the funds themselves to scale up, resulting in larger fund sizes, thereby supporting the EU’s late stage venture capital and growth-focused fund ecosystems.”
In its pilot phase, ESCALAR will provide up to €300 million backed by the European Fund for Strategic Investments (EFSI). This will aim to increase the investment capacity of venture capital and private equity funds, triggering investments of up to €1.2 billion, or four times the original investment, to support promising companies. Interested fund managers can participate in the scheme by responding to the open Call for Expressions of Interest published today by the EIF.
ESCALAR aims to support fund closing by committing up to 50% of the size of the fund. It targets both new funds focusing on financing scale-ups, as well as existing funds wishing to support high potential companies from their portfolio to further develop their growth.
The current ESCALAR call is a pilot phase for 2020 with the objective that ESCALAR, based on this pilot experience, becomes a mainstream European financial instrument, alongside the existing financial instruments after 2020, within the next multiannual framework (2021 – 2027). Analysis and selection of the funds is managed by the EIF.
The current coronavirus outbreak has highlighted the fact that many companies in Europe encounter difficulties when looking for sufficient investments to develop and scale up in Europe. It is estimated that up to 90% of the fast-growing companies have problems financing their growth in Europe. This means either that companies fail to find finance in Europe and have to suspend operations or that promising European start-ups move out of Europe in their scale-up phase.
Due to the coronavirus crisis, the exit routes (such as trade sales or initial public offerings) for venture capital and private equity funds are temporarily closed, implying that these funds will have to support fast-growing portfolio companies for longer. An investment from ESCALAR will support funds making investments (including follow-on investments) in fast-growing companies, allowing them to get through this period of economic disruption.
ESCALAR aims to address some of these issues, by strengthening the availability of venture capital and growth financing in Europe. Venture capital, a form of financing of start-ups that have been deemed to have high growth potential, and growth finance are vital to a well-functioning Capital Markets Union, but remain underdeveloped in Europe, especially in the scale-up phase.
The initiative is complementary to existing financing instruments. It is unique in giving investors the possibility of a higher return, as the return for the ESCALAR shares is both partially subordinated and capped. This can help fund managers raise more private funds to increase their funding capacity and better meet the large financing needs of European scale-ups, especially in difficult times.
UN: A divided world faces a huge number of problems
The current session of the UN General Assembly has shown that the United States will not force the Global South to take its position in the Ukrainian conflict, writes ‘An Nahar’ from Lebanon. Developing countries refuse to condemn Russia and demand an end to hostilities, as they suffer from their consequences.
UN Secretary-General António Guterres said during his speech that humanity faces enormous challenges, from a worsening climate emergency to escalating conflicts, a global cost of living crisis, growing inequality and technological changes.
This is a huge number of problems that a divided world faces. The role of the United Nations has noticeably declined. There is intense competition between the West, led by the United States, on the one hand, and developing countries, led by China, on the other. More than ever, Beijing wants a say in international affairs commensurate with the size of the Chinese economy that has boomed over the past four decades.
The United States appears to be facing an almost impossible task of forging a global consensus on isolating Russia internationally over the situation in Ukraine. Most developing countries have a different view of the Ukrainian conflict, which has been going on for 18 months. They demand a political solution and an immediate cessation of hostilities.
Washington is trying in vain to pressure countries in the Global South to accept a Western strategy based on the idea that the problem will be solved when Russia suffers a crushing defeat in Ukraine. There are leaders in the world who strongly disagree with this approach. Brazilian President Luiz Inacio Lula da Silva, for example, accused the United States of encouraging the conflict in Ukraine. In addition, developing countries have not joined Western sanctions against Russia, despite the pressure put on them.
While Western powers are able to pay for aid to Ukraine, developing countries are suffering from continued hostilities and cannot bear the costs of the conflict. The longer the fighting goes on, the more states in the Global South insist on a ceasefire.
Developing countries are increasingly concerned about pressing issues such as food security, climate change, inequality and the debt crisis. It won’t be long before the consequences of the collapse of the Black Sea grain deal between Russia and Ukraine begin to show in poor countries.
Although the regular session of the UN General Assembly allows for discussion of pressing global problems, disagreements have arisen among participants regarding how to solve them.
The division of countries into international blocs competing with each other has led to the fact that the United Nations has practically lost its global significance and demonstrated ineffectiveness in resolving international conflicts.
The more tensions between states escalate, the weaker the role of the United Nations becomes.
The intensity of global competition is preventing the United Nations from fulfilling the mission for which it created.
The world divided into opposing camps, each of which is looking for the best way to protect its national interests. It is not easy to find a way to salvation or get out of a dead end, ‘An Nahar’ writes.
India’s Canadian riddle
The timing of the Canadian assault on the Indian foreign and security policy establishment over the killing of Hardeep Singh Nijjar is not in doubt, stresses M.K. Bhadrakumar, Indian Ambassador and prominent international observer.
It surged in the aftermath of the G20 summit, which witnessed a crushing diplomatic defeat for the US in front of the world community, where the host country India navigated skilfully to scuttle any negative reference to Russia in the event’s final document.
The Nijjar affair can be metaphorically called the grapes of wrath. The liberal western world so far granted Modi government a free passage through their rules-based order. India could preach, but wasn’t accountable for its own practice. All good things come to an end.
Canada has a record of acting as a surrogate of the US. As regards Nijjar file, a Canadian official familiar with the matter told Associated Press that Prime Minister Justin Trudeau’s allegation against Modi government was based on surveillance of Indian diplomats in Canada, including intelligence provided by a “major ally” who is a member of the infamous Five Eyes, the secretive intelligence network of Anglo-Saxon countries — Australia, Britain, Canada, New Zealand and the US.
Interestingly, Britain scrambled to distance itself from Trudeau’s tirade, while a Canadian source told Reuters that Canberra and Washington collaborated “very closely” to examine evidence indicating potential Indian involvement in Nijjar’s killing.
Trudeau spoke in the Canadian parliament after consultations with President Biden, and the White House reaction on the same day was highly supportive. The White House National Security Council spokesperson Adrienne Watson said, “We are deeply concerned about the allegations referenced by Prime Minister Trudeau. We remain in regular contact with our Canadian partners. It is critical that Canada’s investigation proceed and the perpetrators be brought to justice.”
Watson works under NSA Jake Sullivan who reports directly to Biden. It is unlikely that Sullivan made this a personal issue with the Indian security establishment. Simply put, the buck stops at the Oval Office.
Indeed, after Watson’s initial remark, the White House quickly switched to megaphone diplomacy with its highflying strategic communications chief John Kirby, a retired rear admiral, confirming for record that Biden is “mindful of the serious allegations” by Trudeau “and they are very serious… and we support Canada’s efforts to investigate this. We believe a fully transparent, comprehensive investigation is the right approach so that we can all know exactly what happened, and of course we encourage India to cooperate with that.”
Such gratuitous lecturing is sheer hypocrisy by a country that freely resorts to assassination as a tool in its foreign policy. Who killed Qassem Soleimani?
Alas, in the face of this bullying, Delhi’s reaction has been pusillanimous, to say the least — as if it is stone deaf and couldn’t hear what the White House officials were saying.
One would like to believe that India, with high values in global governance and deep respect for national sovereignty — apart from being the flag carrier of the concept of ‘Vasudhaiva Kutumbakam’ (‘The World is One Family’) — would never descend to such a heinous level as to practice murder in its statecraft.
The Indian government should strategise through its present predicament. After all, as a key member of the western alliance and a close ally of the US, Canada plays an important role for the US in establishing a so-called rules-based international order and promoting the Indo-Pacific Strategy. And “rules-based order” and Indo-Pacific Strategy are Indian mantras too.
Biden himself may come under cloud very soon and be battling for his political career. Inviting him to be the chief guest at the Republic Day with an additional frill thrown in by way of a QUAD summit to placate him is pointless. Once the Canadian investigation runs its course, Ottawa may put on the public domain further accusations passing for “evidence” — and that could happen at some point closer to our general election. All in all, the big question is, what is it that the US is really upto.
Assad-Xi Jinping meeting: China-Syria strategic partnership
Chinese President Xi Jinping and Syrian President Bashar al-Assad on Friday jointly announced the establishment of a China-Syria strategic partnership, Chinese Xinhua Net informs.
The two presidents met in the eastern Chinese city of Hangzhou, Zhejiang Province, ahead of the opening of the 19th Asian Games.
Syria was one of the first Arab countries that established diplomatic relations with the People’s Republic of China, and was one of the countries that co-sponsored the resolution to restore the lawful seat of the People’s Republic of China in the United Nations, Xi said.
Over the 67 years since the establishment of diplomatic relations between the two countries, the China-Syria relationship has stood the test of changes in the international situation, and their friendship has grown stronger over time, he said.
Xi noted that the establishment of the strategic partnership will be an important milestone in the history of bilateral ties.
China is willing to work with Syria to enrich their relationship and continuously advance the China-Syria strategic partnership, Xi said.
Xi emphasized that China will continue to work with Syria to firmly support each other on issues concerning the two sides’ respective core interests and major concerns, safeguard the common interests of both countries and other developing countries, and uphold international fairness and justice.
China supports Syria in opposing foreign interference, rejecting unilateralism and bullying, and safeguarding national independence, sovereignty and territorial integrity, he said.
China supports Syria in conducting reconstruction, enhancing counter-terrorism capacity building, and promoting a political settlement of the Syrian issue following the “Syrian-led, Syrian-owned” principle, Xi said.
China also supports Syria in improving its relations with other Arab countries and playing a greater role in international and regional affairs, he added.
China is willing to strengthen Belt and Road cooperation with Syria, increase the import of high-quality agricultural products from Syria, and jointly implement the Global Development Initiative, the Global Security Initiative and the Global Civilization Initiative to make active contributions to regional and global peace and development.
Assad said that in international affairs, China has always aligned itself with international fairness and justice, and upheld international law and humanitarianism, playing an important and constructive role.
Syria highly appreciates and firmly supports the Belt and Road Initiative, the Global Development Initiative, the Global Security Initiative and the Global Civilization Initiative, and will actively participate in them, Assad added.
The Syrian side thanks the Chinese government for its invaluable support to the Syrian people, firmly opposes any act of interference in China’s internal affairs, and is willing to be China’s long-term and staunch friend and partner, he said.
Assad said Syria will take the establishment of the Syria-China strategic partnership as an opportunity to strengthen bilateral friendly cooperation and step up their communication and coordination in international and regional affairs.
After the talks, the two heads of state witnessed the signing of bilateral cooperation documents in areas including Belt and Road cooperation, and economic and technological cooperation.
Eastern Europe3 days ago
The agreement was reached to stop the Azerbaijan’s Anti-TerrorOperation in Karabakh: quo vadis?
Finance4 days ago
World Trade Report 2023: “re-globalization” amid early signs of fragmentation
World News4 days ago
Shoigu: Moscow and Tehran are reaching a new level of interaction
Africa4 days ago
A New Wave of Leaders in West Africa: A departure from instability to stability
Finance4 days ago
Transforming Africa’s Transport and Energy Sectors in landmark Zanzibar Declaration
Tech News4 days ago
Easing job jitters in the digital revolution
Finance3 days ago
Russian response to sanctions: billions in dollar terms are stuck in Russia
Eastern Europe3 days ago
Azerbaijan Takes Advantage of Armenia’s Strategic Isolation to Resume Hostilities in Nagorno-Karabakh