What  is a European Economic Interest Group?

The European Economic Interest Group = EEIG (French: Groupément Européen d' Intérêt Economique = GEIE) was estabilished according to EEC regulation Nr. 2137/85 approved by the Council, on 25 july 1985 within the context of an integrated programme in favour of SMEs (Small and Medium Enterprises).

It is an effective instrument able to offer enterprises a reference framework for co-operation under the European Community legal system.

The establishment of a GEIE creates an independent legal body whose aim is to facilitate and foster the economic activity of its members, improving or enhancing the results of this activity, in particular, for SMEs interested in participating in projects on a European basis.

The flexibility of the GEIE legal body allows its members to respond immediately to possible changes in the co-operation conditions.

The aim is to offer a valid support in financial and trading activities

Basic characteristics of a GEIE:

• full and autonomous legal competency: there is the possibility of acting on one's behalf, through one or more administrators, who can be appointed regardless whether they are members or not, and whose powers of representation are drawn directly from the rules governing corporations.
  This offers members the fundamental advantage of presenting themselves as a single entity in negotiating contracts and requesting loans or financial guarantees for public tenders.
• GEIE as an auxiliary body: it sets itself the objective of allowing members to improve their achievements by developing individual economic activities and it is also a non-profit organisation itself.
• Flexibility: absolute freedom in terms of financing. Capital is not required for incorporation.
• Duration: limited or unlimited. It is a very suitable tool also for short-term projects.

Members have a joint responsibility in carrying out the group's obligations and unlimited liabilities restricted to the framework of the project for which the loan has been granted.

The GEIE can incur, on its own behalf, commitments having financial implications, taking on burdens guaranteed by its own assets, but the members' responsibility is however of an individual nature.

 

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