Improving the Take-Up and Effectiveness of Financial Instruments: Final Report

Fiona Wishlade, Rona Michie, Patricia Robertson, Philip Vernon

Research output: Book/ReportCommissioned report

Abstract

In the wake of the financial crisis, public and private investment has stagnated due to loss of confidence and austerity policies. The supply side for investment is complex, with the boundaries between public and private often blurred. The overall landscape varies widely between countries, but is characterised by the growing importance of national promotional banks (NPBs) in economic development. Carefully calibrated financial instruments, often provided through NPBs, can provide sustainable support for revenue-generating / saving projects in areas like SME support, R&D&I and energy efficiency where market imperfections result in suboptimal levels of investment. The uptake of ESI Fund co-financed FIs has increased in 2014-20, but remains focused on loan-based SME support. The regulatory framework for ESIF co-financed FIs has improved, especially through mandatory ex ante assessments, but the implementation of FIs remains challenging for Managing Authorities, suggesting that more timely guidance, more stable rules, and perhaps more ‘off-the-shelf’ instruments would be beneficial. However, the plethora of initiatives at domestic and European levels can make the FI ‘scene’ difficult to decipher and quantify. Related, there is evidence of policy competition, pointing to the need to rationalise modes of intervention and tailor FIs to the relevant institutional and economic context.
LanguageEnglish
Place of PublicationLuxembourg
Commissioning bodyEuropean Commission
Number of pages178
DOIs
Publication statusPublished - 31 May 2017

Fingerprint

Financial instruments
Small and medium-sized enterprises
Revenue
Loans
Financial crisis
Regulatory framework
Economics
Energy efficiency
Public investment
Market imperfections
Guidance
Confidence
Private investment
Competition policy
Economic development
Supply side
Authority

Keywords

  • financial instruments
  • cohesion policy
  • public investment
  • economic development
  • European Regional Development Fund
  • private investment

Cite this

@book{df2e4ff3af6c40daa514a3d63a772201,
title = "Improving the Take-Up and Effectiveness of Financial Instruments: Final Report",
abstract = "In the wake of the financial crisis, public and private investment has stagnated due to loss of confidence and austerity policies. The supply side for investment is complex, with the boundaries between public and private often blurred. The overall landscape varies widely between countries, but is characterised by the growing importance of national promotional banks (NPBs) in economic development. Carefully calibrated financial instruments, often provided through NPBs, can provide sustainable support for revenue-generating / saving projects in areas like SME support, R&D&I and energy efficiency where market imperfections result in suboptimal levels of investment. The uptake of ESI Fund co-financed FIs has increased in 2014-20, but remains focused on loan-based SME support. The regulatory framework for ESIF co-financed FIs has improved, especially through mandatory ex ante assessments, but the implementation of FIs remains challenging for Managing Authorities, suggesting that more timely guidance, more stable rules, and perhaps more ‘off-the-shelf’ instruments would be beneficial. However, the plethora of initiatives at domestic and European levels can make the FI ‘scene’ difficult to decipher and quantify. Related, there is evidence of policy competition, pointing to the need to rationalise modes of intervention and tailor FIs to the relevant institutional and economic context.",
keywords = "financial instruments, cohesion policy, public investment, economic development, European Regional Development Fund, private investment",
author = "Fiona Wishlade and Rona Michie and Patricia Robertson and Philip Vernon",
year = "2017",
month = "5",
day = "31",
doi = "10.2776/981010",
language = "English",
isbn = "9789279721175",

}

Improving the Take-Up and Effectiveness of Financial Instruments : Final Report. / Wishlade, Fiona; Michie, Rona; Robertson, Patricia; Vernon, Philip.

Luxembourg, 2017. 178 p.

Research output: Book/ReportCommissioned report

TY - BOOK

T1 - Improving the Take-Up and Effectiveness of Financial Instruments

T2 - Final Report

AU - Wishlade, Fiona

AU - Michie, Rona

AU - Robertson, Patricia

AU - Vernon, Philip

PY - 2017/5/31

Y1 - 2017/5/31

N2 - In the wake of the financial crisis, public and private investment has stagnated due to loss of confidence and austerity policies. The supply side for investment is complex, with the boundaries between public and private often blurred. The overall landscape varies widely between countries, but is characterised by the growing importance of national promotional banks (NPBs) in economic development. Carefully calibrated financial instruments, often provided through NPBs, can provide sustainable support for revenue-generating / saving projects in areas like SME support, R&D&I and energy efficiency where market imperfections result in suboptimal levels of investment. The uptake of ESI Fund co-financed FIs has increased in 2014-20, but remains focused on loan-based SME support. The regulatory framework for ESIF co-financed FIs has improved, especially through mandatory ex ante assessments, but the implementation of FIs remains challenging for Managing Authorities, suggesting that more timely guidance, more stable rules, and perhaps more ‘off-the-shelf’ instruments would be beneficial. However, the plethora of initiatives at domestic and European levels can make the FI ‘scene’ difficult to decipher and quantify. Related, there is evidence of policy competition, pointing to the need to rationalise modes of intervention and tailor FIs to the relevant institutional and economic context.

AB - In the wake of the financial crisis, public and private investment has stagnated due to loss of confidence and austerity policies. The supply side for investment is complex, with the boundaries between public and private often blurred. The overall landscape varies widely between countries, but is characterised by the growing importance of national promotional banks (NPBs) in economic development. Carefully calibrated financial instruments, often provided through NPBs, can provide sustainable support for revenue-generating / saving projects in areas like SME support, R&D&I and energy efficiency where market imperfections result in suboptimal levels of investment. The uptake of ESI Fund co-financed FIs has increased in 2014-20, but remains focused on loan-based SME support. The regulatory framework for ESIF co-financed FIs has improved, especially through mandatory ex ante assessments, but the implementation of FIs remains challenging for Managing Authorities, suggesting that more timely guidance, more stable rules, and perhaps more ‘off-the-shelf’ instruments would be beneficial. However, the plethora of initiatives at domestic and European levels can make the FI ‘scene’ difficult to decipher and quantify. Related, there is evidence of policy competition, pointing to the need to rationalise modes of intervention and tailor FIs to the relevant institutional and economic context.

KW - financial instruments

KW - cohesion policy

KW - public investment

KW - economic development

KW - European Regional Development Fund

KW - private investment

U2 - 10.2776/981010

DO - 10.2776/981010

M3 - Commissioned report

SN - 9789279721175

BT - Improving the Take-Up and Effectiveness of Financial Instruments

CY - Luxembourg

ER -