COSME

COSME
Name	COSME
Type	European Union programme
Established	2014
Budget	€2.3 billion
Duration	2014–2020 (initial), continued actions 2021–2027
Administered by	European Commission

COSME COSME was an initiative of the European Union created to support Small and Medium-sized Enterprises and enhance competitiveness across the European Single Market, the European Commission implementing measures through executive agencies and national contact points. It operated alongside programmes such as Horizon 2020, Erasmus+, LIFE Programme, and Connecting Europe Facility to foster access to finance, market access, internationalisation and entrepreneurship, including links with the European Investment Bank, European Investment Fund, Enterprise Europe Network and national development banks. COSME’s activities interfaced with policy frameworks such as the Small Business Act for Europe, the Europe 2020 strategy, the Capital Markets Union, and the Digital Single Market initiatives.

Overview

COSME was designed to address barriers faced by firms across the European Union and partner countries, operating in contexts shaped by institutions like the European Council, the European Parliament, the Council of the European Union and directorates-general such as DG GROW and DG FISMA. The programme built on precedents set by the Competitiveness and Innovation Framework Programme and coordinated with the European Structural and Investment Funds, the European Bank for Reconstruction and Development, and international actors including the Organisation for Economic Co-operation and Development and the World Bank. COSME’s instruments complemented initiatives associated with the Startup Europe strategy, the Single Market Act reforms, and national entrepreneurship schemes in member states such as Germany, France, Italy, Spain and Poland.

Objectives and scope

COSME aimed to improve access to finance for small and medium enterprises via financial instruments and guarantee schemes connected to the European Investment Fund and the European Investment Bank, facilitate access to markets through support for internationalisation and the Enterprise Europe Network, promote entrepreneurship education linked to programmes in Finland, Sweden and Estonia, and create an environment for competitiveness aligned with OECD recommendations. Target sectors included manufacturing clusters in Bavaria, technology ventures in Silicon Docks, tourism operators in Greece and Portugal, creative industries in London and Milan, and agri-food SMEs in France and Netherlands. COSME also supported mobility of skills in coordination with EURES and exchange initiatives modelled on Erasmus for Young Entrepreneurs.

Programme structure and funding

The COSME budget was approximately €2.3 billion for 2014–2020, administered through instruments including loan guarantees, equity facilities and operating grants to networks such as the Enterprise Europe Network, and delivered via partners like the European Investment Fund, national promotional banks such as KfW, Bpifrance, CDP (Italy), and financial intermediaries including Banque Publique d'Investissement. Financial architecture referenced mechanisms from the Structural Funds and intersected with private investors in markets such as the Frankfurt Stock Exchange and Euronext. Governance arrangements relied on procedures established by the Treaty on the Functioning of the European Union and budgetary oversight by the European Court of Auditors and the European Anti-Fraud Office.

Key initiatives and actions

Major actions included the COSME Loan Guarantee Facility connected to the European Investment Fund, the Equity Facility for Growth interacting with venture capital markets in Amsterdam and Paris, the Enterprise Europe Network providing advisory services in cities such as Madrid, Rome, Brussels and Vienna, and the Erasmus-style entrepreneurship mobility Erasmus for Young Entrepreneurs exchanges between incubators in Berlin and accelerators in Barcelona. COSME supported internationalisation through trade missions aligned with Trade Commissioner strategies and cooperating with bodies such as the European External Action Service to reach markets in China, United States, India and Canada. It also funded awareness campaigns on standards and intellectual property with institutions like the European Patent Office and European Medicines Agency.

Implementation and governance

Implementation involved the European Commission delegating tasks to executive agencies including the Innovation and Networks Executive Agency and collaborating with national authorities, regional development agencies such as Invest in France and networks like Eurochambres and BusinessEurope. A programme committee composed of representatives from member states, stakeholders from organisations like the European Trade Union Confederation and the Confederation of European Directors Associations, and oversight by the European Parliament ensured compliance with regulations derived from the Financial Regulation of the EU. Monitoring and audits were performed by the European Court of Auditors, while anti-fraud cooperation engaged the European Anti-Fraud Office and national auditing bodies.

Impact and evaluation

Evaluations by the European Commission and independent assessors measured outcomes in job creation, access to finance, cross-border partnerships and firm survival rates, comparing results with indicators from the Small Business Act for Europe and benchmarks set by the Organisation for Economic Co-operation and Development. COSME reported increases in credit lines for SMEs, expansion of the Enterprise Europe Network’s outreach, and growth in Erasmus for Young Entrepreneurs exchanges, with case studies spanning start-ups in Lithuania, scale-ups in Ireland, and family businesses in Austria. External reviews referenced synergies with Horizon 2020 research commercialisation, contributions to Digital Single Market objectives, and informed successor arrangements within the 2021–2027 EU budget cycle involving the InvestEU programme and continuity measures supported by the European Investment Bank Group.

Category:European Union programmes