Investment Plan for Europe & ESIF Financial Instruments 2014-2020 ESF Informal Technical Working Group 25 March 2015 Brussels Andrea DA POZZO EMPL E1

The "investment gap" in Europe

Investment plan strands

EFSI

Mobilising finance for investment Over three years Positive impact on investment throughout the economy Priorities at national and regional level (e.g. SMEs, research, transport, environment) Impact of Member States' contributions to the Fund EUR 315 bn EUR 20 bn (at least) SMEs and mid-cap companies Will depend on commitment Improved investment environment at EU and national level Strategic investments of European significance in energy, transport, broadband, education, research and innovation Better use of the European Structural and Investment Funds EUR 75 bn Possible Member States' contributions to the Fund EUR 240 bn European Fund for Strategic Investments: EUR 21 bn (initially)

Timeline and milestones

ESF and the Investment Plan

Investment Plan COM(2014) 903 final Page 10 "… Member States should commit to increase significantly their use of innovative financial instruments in key investment areas such as SME-support, energy efficiency, Information and Communication Technology, transport and R&D support. This would achieve at least an overall doubling in the use of financial instruments under the ESIF for the programming period from 2014 to 2020…" Footnote: "… In order to achieve this, Member States are recommended to deliver through innovative financial instruments a specific percentage of the allocations made in their Partnership Agreements to each of the key investment areas as follows: 50% in the field of SME support, 20% in the field of CO2 reduction measures, 10% in the field of Information and Communication Technology, 10% in the field of sustainable transport, 5% in the field of support for Research Development and Innovation and 5% in the field of environmental and resource efficiency…"

Doubling of ESIF financial instruments Financial instruments are particularly effective to increase the impact of ESIF An overall doubling of the use of financial instruments in 2014-2020 relative to 2007-2013 (increase from €12 billion to close to EUR 30 billion) is an ambitious but realistic target This extra €18 billion could leverage additional investments between €40-70bn (of which at least EUR 20bn in first three years)

ESF FEIs implementation (2007-2013) ESF OP contributions paid to FEIs for enterprises and invested in final recipients at the end of 2013 (EUR ml)

ESF FEIs implementation (2007-2013) Managing Authority € 680.33 ml Phase 1 Structural Funds and national co-financing € 18.21 ml Holding Fund (HF) € 432,72 ml Structural Funds and national co-financing Specific fund managed by financial intermediary Phase 2 € 662.12 ml Structural Funds and national co-financing Financial products* * in the form of equity, loans, guarantees or other forms of repayable investments   Phase 3 € 229.4 ml (35%)

Why is this target achievable? Legal framework for 2014-2020 is open to all thematic objectives and widens implementation options EU level instruments: synergies with EaSI fi-compass: knowledge hub for guidance and advice on financial instruments "Off-the-shelf instruments": ready-to-use and state aid cleared templates for financial instruments

Other ways to boost impact of ESIF MS/MA can increase leverage through increasing national co-financing beyond legal minimum requirement Cooperate with EIB group to leverage national resources Use EU funds still available under 2007-2013 programmes to best effect

Is there any change in the Commission's line? The Commission's ambition for 2014-2020 has always been to increase the use of financial instruments The October 2013 European Council also called for an increase, including at least doubling of use for SMEs in certain countries where conditions remain tight. DG EMPL is pushing for an increased use of financial instruments Key differences = now an overall doubling + specific push to achieve aggregate targets per thematic objective (not for ESF)

Financial Instruments' ex-ante assessment vs 'easier‘ Grants This is a false argument: any public intervention under ESIF rules needs to be justified, independently of its form Provisions on ex-ante assessment are simply common- sense rules which MAs apply to other forms of finance in any case: analysis of need and added value of the proposed operation and questions to determine the optimum design of the proposed operation In some aspects financial instruments are 'easier': support to or from FI is exempt from certain rules applicable to other forms of assistance Guidance to help MAs is already available

Programme not yet adopted: what to do? Check the planned use of financial instruments & appraisal of rationale for form of support in the ex-ante evaluation If not, then why not? If there is time, MAs should carries out analysis of possibility to use FIs to deliver on key TOs. If the programme has to be adopted quickly, at least include a 'hook' in table 2.A.6.3 to enable future use of FIs even if not envisaged immediately (i.e. the potential use of financial instruments will be kept under review and the OP will introduce financial instruments where possible during the implementing time of the OP, subject to an ex-ante assessment under CPR 37(2)) Do not however insist on full fixed details in the programme

Programme already adopted: what to do? This exercise will usually NOT require re-programming: focus is on implementation and making sure that FIs are used as a delivery tool in all cases where they should LTT to be finalised and distributed Managing authorities should look at each programme to identify: state of play unused potential for use of financial instruments If not, then why not? COM will collect questions and needs from MAs

How the Commission helps? FIs ex-ante assessment training => 27 November 2014 - Brussels FIs Launching Conference => 19 & 20 January 2015 - Brussels 3 awareness raising events in MSs => 2nd semester 2015 ESF FIs high-level conference => Nov-Dec 2015 Guidance Good practices: case studies, fact sheets, handbooks fi-compass knowledge advisory hub

Technical Assistance Platform for ESIF FIs 19 19

Fi-compass main products 20

Useful links ESF Web Site Cohesion policy 2014-2020 http://www.fi-compass.eu/ ESF Web Site http://ec.europa.eu/esf/ Cohesion policy 2014-2020 http://ec.europa.eu/regional_policy/what/future/index_en.cfm Financial Instruments in Cohesion Policy 2014-2020 http://ec.europa.eu/regional_policy/thefunds/fin_inst/index_en.cfm

Thank you for your attention! Questions & Answers Thank you for your attention!