Meeting of the Union for the Mediterranean finance ministers: main results

The ministers established a common diagnosis on the economic situation in the Euro-Mediterranean area. In the countries of the EU, growth is weaker than expected due to a triple shock: inflation, exchange rates, and the impact of the financial crisis. The Mediterranean countries have so far proved resilient to the crisis, thanks in part to the ongoing reform agenda, but the risks of economic slowdown are real, in view of the current economic slowdown within the EU.

In this context, the ministers expressed their support for the action of the authorities and the institutions concerned and their determination to respond to the current financial crisis.

The ministers also expressed their concern at the strong fluctuations in raw commodity prices, particularly oil and food products, and emphasised the need to better understand the causes.

They discussed best practices for responding to the social consequences of rising prices, notably through setting up aid targeted at the most vulnerable populations.

Following on from the Paris Summit for the Mediterranean, the ministers moved forward on the financing of specific projects selected by the Heads of State and Government on 13 July. They particularly emphasised the role played by the Facility for Euro-Mediterranean Investment and Partnership (FEMIP) in three of these: the de-pollution of the Mediterranean, motorways of the sea and the Mediterranean solar plan. The FEMIP, run by the European Investment Bank, the financial arm of the European Union, is the leading investor in the Mediterranean.
The ministers welcomed the FEMIP's new strategy, enabling it to step up its already significant efforts and stimulate investments, particularly from the private sector in favour of these three key projects.

Lastly, the ministers supported the approach adopted by Italy and Spain, in connection with other European and Mediterranean partners, to implement the Mediterranean Business Development Initiative, another specific project retained on 13 July. This initiative aims at improving access to financing for Mediterranean small and medium-sized enterprises (SMEs). The development of Mediterranean SMEs, which represent 99% of Mediterranean enterprises and are behind the creation of two thirds of jobs in the region, is one of the keys to employment and economic growth in the Mediterranean.

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• Updated: 23.12.2008

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