The European Union will provide some €200 million worth of grants for the small and medium-sized enterprises (SMEs) in Moldova, Ukraine and Georgia through the DCFTA Facility, Commissioner for European Neighborhood Policy and Enlargement Negotiations  Johannes Hahn announced on May 21, quoted by IPN’s correspondent in Riga.

In a news conference on the sidelines of the Eastern Partnership Business Forum held in Riga, Johannes Hahn said this contribution is expected to unlock new investments worth at least €2 billion for the SMEs in the three DCFTA countries, but didn’t specify the mechanism.

The Commissioner noted that the money will be provided to SMEs based on merit, for competitive and high-quality projects. The financing will enable the SMEs to invest in enhancing competitiveness and will help them to integrate into the global networks and to comply with EU product standards and environmental protection measures.

Hahn stressed the important role played by the SMEs in the European economy, underlining the direct relationship between their activity and the population employment rates.

On June 27, 2014, Moldova, alongside Georgia and Ukraine, signed Association Agreements with the EU, which provide for the creation of Deep and Comprehensive Free Trade Areas (DCFTA). The DCFTA Facility for SMEs is an instrument created by the European Commission, together with the European Bank for Reconstruction and Development and the European Investment Bank, to facilitate the adjustment of the SMEs to the new rules concerning businesses associated with the DCFTA.

The third Business Forum precedes the EaP Summit that is hosted by the Latvian capital on May 21 and 22.