Financial Instruments in Cohesion Policy DG REGIO, Open Days, Brussels, October 2013 Financial Instruments for SMEs- A regional example

Financial Instruments in Support of Regional Policy Three areas of support by Financial Instruments (Fis) through European Regional Development Fund (ERDF) and European Social Fund (ESF) (NOT Cohesion Fund): Enterprises, including SMEs & micro enterprises; Sustainable urban development; Energy Efficiency (EE) & Renewable Energy sector (RES) in the building sector, including existing housing. FEI Implementation progress in EU Member States (as of ): Fis for enterprisesFIs for sustainable urban development Fis for energy efficiency and renewable energies EUR bn of Structural Fund (SF) & national resources paid to 864 Fis EUR 1.6 bn of SF and national resources paid to 56 Fis EUR 444 million of SF and national resources paid to 20 Fis

Advantages of Fis vs. Grants A Regional experience in 2007 – 2013 (Wielopolska) Investment instead of a non-refundable financing; Recycling of funds and creation of sustainable mechanism of regional support The leverage effect; Support for projects carried out jointly by the public and private sectors (JESSICA initiative); Benefits of professional Financial Institutions experience for the next financial perspective WROP Financial instruments JESSICA Revitalisation of Urban Areas Support for Business Environment Institutions JEREMIE SMEs support

Financial Instruments in 2014 – 2020 expand across EU Programmes Infrastructure Horizon 2020 Equity and Risk Sharing Instruments Horizon 2020 Equity and Risk Sharing Instruments Instruments under Structural and Cohesion Funds  EU level (central management)  National/regional instruments (shared management)  Off-the shelf FIs  Tailor made FIs Significant higher amounts than currently! Instruments under Structural and Cohesion 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 Competitiveness & SME (COSME) Equity & guarantees Connecting Europe Facility (CEF) Risk sharing (e.g. project bonds) and equity instruments Connecting Europe Facility (CEF) Risk sharing (e.g. project bonds) and equity instruments Social Change & Innovation Social Change & Innovation Creative Europe Guarantee Facility Creative Europe Guarantee Facility Erasmus for all Guarantee Facility Erasmus for all Guarantee Facility Shared Management with Member States (Common Provisions Regulation) Centrally managed by EU COM (Financial Regulation) Research, Development Innovation Growth, Jobs and Social Cohesion

Financial Instruments for SMEs National Vision (Scotland) for 2014 – 2020 I.Significant Increase in the use of Fis to address market failures; II.Need for long term sustained intervention to underpin early stage markets; III.Interventions at market level (versus interest groupings); IV.Long term planning versus short term expectations; V.Evergreen + long term sustainable funds.

What’s new in the 2014 – 2020 Financial Instruments? I.Expansion to all thematic objectives & priorities foreseen by SF Operational Programmes (ERDF, ESF, Cohesion Fund, European Agriculture Fund for Rural Development (EAFRD), European Maritime Fisheries Fund (EMFF); II.More implementation options for managing authorities: Fis at national, regional, transnational or cross-border level (shared management: Tailor made / Off the shelf); Contribution to EU level Fis under central management (ring-fencing); III.Ex-ante assessment to be carried out before launch of Fis operation under the ESIF; IV.Better combination of Fis & other forms of support; V.Incentives regarding EU co-financing rates; VI.Phased contributions to Financial Intermediaries; VII.More detailed rules.

I.Finalization of Common Provisions Regulation (CPR); II.Drafting of secondary legislation (envisaged Delegated Act and Implementing Act) on-going; adoption only after adoption of CPR; III.Development of ready-to-use "off-the-shelf" instruments on-going (to be laid down in Implementing Act); IV.Concept for a Technical Assistance (TA) platform for financial instruments in cohesion policy to be developed. Implications for the new EU Financial Instruments