Seminar

Financial Instruments for delivery of the ESF

04 November 2015Warsaw

Andrea DA POZZOEMPL E1

1

FEIs in Cohesion Policy

Design & Implementation Challenges Delays in delivering funds to final recipients: FEIs represent a new approach to Cohesion Policy support, requiring new skills, partnerships and capacities

Limited availability of reporting & monitoring data

Over allocation of resources to financial instruments

Shortcomings in the financial or market gap assessment: rationale for FEIs setting out?

Potential for achieving better leverage effects

Legal and administrative framework not detailed enough from the outset (COCOF Guidance, audit methodology)

2

FIs (2014-2020): Introduction

Background: Increased importance of FIs in implementing EU budget resources European Investment Plan

Legislative framework 2014-2020 Provide a clear set of rules, based on existing experience,

guidance Facilitate wider and more flexible use (e.g. capture synergies with

grants, wider thematic scope, more implementation options) Ensure better targeting, budgeting and monitoring of FIs Achieve compatibility with financial instruments at EU level

3

FIs (2014-2020): Key Novelties IWider scopeCPR (Reg.1303/2013) covers all five ESI Funds: ESF, ERDF, Cohesion Fund, EAFRD and EMFF

Expansion to all thematic objectives & priorities foreseen by ESI Funds OPs

More implementation options for managing authorities

Contribution to national, regional, transnational or cross-border FIs under shared management

Tailor-made instruments (already existing or newly created)

Standardised "off-the-shelf" instruments for quick roll-out

Contribution to EU level ring-fenced FIs under direct management4

FIs (2014-2020): MFF Overview

5

Research, Development & Innovation

Growth, Jobs andSocial Cohesion

InfrastructureEnergyDigitalAgenda

Horizon 2020Equity and Risk Sharing Instruments

(EUR 2.8 bn, including at least EUR 710m for RSI II) Instruments under European Structural and

Investment Funds

EU level instruments (central management)

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

COSMECompetitiveness & SME

Equity & guarantees(EUR 1.4 bn, incl. EUR

700m for SME guarantees)

Connecting Europe Facility (CEF)Total budget cap EUR 2.9bn

Risk sharing (e.g. project bonds) and equity instruments(Project Bonds Initiative – EUR 460m)

EASISocial Change & Innovation

Creative EuropeGuarantee Facility

(EUR 121m)

Erasmus for allGuarantee Facility

(EUR 517m)

Regional/National Instruments(Common Provision Regulation)

EU-level Instruments(Financial Regulation)

Life +Risk sharing and guarantees and equity(Deep Green, Natural Capital and RSI II)

(EUR 350m)

FIs (2014-2020): Key Novelties II

Ex-ante assessment to be carried out before launch of FIs operations under the ESI Funds

Better combination of FIs & other forms of support:In Financial Instruments: Grant component may cover financing (e.g. state aid compliant subsidy element) or technical assistance for the benefit of the final recipientAt the level of final recipients: Combination is now possible also with assistance from other programmes supported by the EU budget

MAs may undertake implementation tasks directly for FIs consisting solely of loans and guarantees

Incentives regarding EU co-financing rates:EU-level instruments: Up to 100% of the paid support may come from ERDF, ESF and CF; separate priority axis to be foreseenInstruments implemented at national/regional level: ERDF, ESF, CF co-financing rate to increase by 10% if an entire priority axis is implemented through financial instruments 6

FIs (2014-2020): Key Novelties III Phased contributions to FIs

MAs shall pay programme contributions in at least 4 tranches Subsequent payments from MAs to FIs to be made on the basis of FIs

investment rate in relation to programme contributions received

More detailed rules concerning eligible expenditure at closure, the (re)use of interest/other gains and ESIF resources returned during

the programming period, the use of interest/other gains and ESIF resources returned after

closure (legacy)

Annual reporting by MAs MAs to report to COM on FIs operations annually (annex to the annual

implementation report); reporting items should be aligned with requirements of the Financial Regulation

COM to publish annual summary report on the basis of data received 7

8

18

33

4953

0

10

20

30

40

50

60

2011 2012 2013 2014 2014-2020

N° of ESF FEIs by 2014

9

208 252.75333.92

472,10

864.84

0100200300400500600700800900

1,000

2011 2012 2013 2014 Forecast2014- 2020

Cumulative ESF OPs amounts paid to FEIs by 2014 (€ m)

10

6 13 14 20 31

126

262

472

050

100150200250300350400450500

EE LV LT DK PL DE IT Total

ESF amounts paid to FEIs by country in 2014 (€ m)

11

10 25 2633 41

6582 90

107116

132 139

020406080

100120140160

GR BG HU ES LT SK DE HR PL IT RO PT

2014-20 Planned ESF OPs allocations to FIs by Member State (€ m)

12

432.88

210.81

24.518.35 188.30

2014-2020 Breakdown of planned ESF Ops allocations to FIs by thematic objective

TO 8

TO 9

TO 10

TO 11

Multi TO

Use ESF FEIs 2007-2013

13

ESF

Loans Microcredit

Guarantees

Individuals17687

Equity

Micro enterprises

11286

SMEs16716

jobs created22780

Potential use ESF FIs 2014-2020

14

Student loans Social

entrepreneurship

Microcredit

Personal loans

ESF

Questions & Answers

Thank you for your attention!

Seminar��Financial Instruments for delivery of the ESFFEIs in Cohesion PolicyFIs (2014-2020): IntroductionFIs (2014-2020): Key Novelties IFIs (2014-2020): MFF OverviewFIs (2014-2020): Key Novelties IIFIs (2014-2020): Key Novelties IIISlide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Use ESF FEIs 2007-2013Potential use ESF FIs 2014-2020Questions & Answers