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Financial Instruments supported by the European Structural

and Investment (ESI) Funds in 2014-2020

SMEs Seminar. 14 March 2014, Barcelona

Andrea Mairate. DG Regional and Urban Policy

European Commission

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Financial Instruments

Definition:

• measures of financial support provided on a complementary basis from the budget in order to address one or more specific policy objectives of the Union.

• Such instruments may take the form of equity or quasi-equity investments, loans or guarantees, or other risk-sharing instruments, and may, where appropriate, be combined with grants.

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Financial Instruments

Advantages:

• Efficiency gains due to revolving funds (remain in the programme area)

• Leverage of resources, increase of impact of ESIF programmes

• Financing provided before investment takes place (different from grants)

• Better quality of projects (investment must be repaid)

• Incentives to use FIs as alternative to grants (move away from "grant dependency" culture) 3

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•  •  

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Financial Instruments in SMEs (at year end 2012)

• EUR 4.5 billion of SFs & national resources already disbursed to enterprises, mainly through loan and guarantee products

• More than 160.000 of SMEs and micro-enterprises supported

• At least 44.000 of jobs created through FIs;

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Financial instruments 2014-2020

EUROPEAN COUNCIL 24/25 OCTOBER 2013 – CONCLUSIONS:

The programming negotiations of the European Structural and Investment Funds (ESIF) should be used to:

• Significantly increase the overall EU support to leverage-based financial instruments for SMEs in 2014-2020, while at least doubling support in countries where conditions remain tight.

• These instruments should be designed in a way which limits market fragmentation, ensures high leverage effects and quick uptake by the SMEs. This will help concentrate the funds adequately and expand the volume of new loans to SMEs. 7

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Infrastructure

Horizon 2020Equity and Risk Sharing Instruments European Structural and

Investment Funds

EU level (central management)

National/regional instruments (shared management) Off-the shelf FIs Tailor made FIs

Significant higher amounts than currently!

Competitiveness & SME (COSME)

Equity & guarantees

Connecting Europe Facility (CEF)Risk sharing (e.g. project bonds) and equity

instruments

Employment and social innovation

(EaSI)

Creative EuropeGuarantee Facility

Erasmus+Guarantee Facility

1.Shared Management with MS (Common Provisions Regulation)

2.Centrally managed by COM (Financial Regulation)

Research, Development Innovation

Growth, Jobs and Social Cohesion

Financial Instruments 2014-2020

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Thank you for your attention

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