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

2. The "investment gap" in Europe

3. Investment plan strands

4. EFSI

5. 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)

6. Timeline and milestones

7. ESF and the Investment Plan

8. 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…"

9. 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 relative to (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)

10. 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)

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

12. Why is this target achievable?
Legal framework for 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

13. 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 programmes to best effect

14. Is there any change in the Commission's line?
The Commission's ambition for 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)

15. 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

16. 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

17. 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

18. How the Commission helps?
FIs ex-ante assessment training => 27 November Brussels
FIs Launching Conference => 19 & 20 January 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

19. Technical Assistance Platform for ESIF FIs19 19

20. Fi-compass main products20

21. Useful links ESF Web Site Cohesion policy 2014-2020
ESF Web Site
Cohesion policy
Financial Instruments in Cohesion Policy

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