EU – Baltic States, Financial Services, Funds, Good for Business, Investments, Markets and Companies
International Internet Magazine. Baltic States news & analytics
Friday, 19.04.2024, 14:37
European Structural and Investment Funds assist SMEs
A new report (December 2017) highlighted
the achievements the EU five “structural” reached since the beginning of new
multi-year budget in 2014. These European
structural and investment funds (ESIF)
for the period 2014-20, together with
the member states’ co-financing, represent an investment volume of about €638
billion, including €181 billion dedicated to "smart growth", particularly
aimed at investments in research and innovation, in digital technologies and in
direct support to over two million SMEs in Europe.
Assisting SMEs
The report is done in the context of major novelties
introduced in 2014 to enhance the quality of spending, such as thematic concentration, new preconditions to
investments and enhanced focus on results and performance measurement
mechanisms.
ESIFs are part of the EU’s general cohesion policy
framework and are concentrated on eleven thematic objectives, which have to be
kept in mind by SMEs in choosing the sectors of activity.
Four of these key priorities are
forming the “structure” of European Regional Development Fund (ERDF): = Research and innovation; = Information and communication technologies; = SMEs competitiveness, and Low carbon economy.
Besides, the member
states and regions must allocate a certain share of ERDF funding to at least three
of these key priorities: at least 80 % of ERDF funding for more developed regions; at least 60 % of ERDF funding for transition regions; and at least 50 %
of ERDF funding for less developed
regions.
See more: http://ec.europa.eu/regional_policy/en/policy/themes/
Up to October 2017, almost half of the ESI funds’ budget
for 2014-20 had been committed to concrete projects. During 2014-16, almost
793,500 SMEs had received support from the funds, creating an estimated 154,000
new jobs. About 7.8 million people have already benefitted from assistance in
finding a job or developing skills, while the biodiversity of 23.5 million
hectares of agricultural land has been improved. Overall, 2 million EU-funded
projects had been selected by the end of 2016, which is 1 million more than the year before; the biodiversity of 11 million hectares of
agricultural land was improved and one million EU-funded projects were
selected, for a total value of almost €60 billion.
Source: http://europa.eu/rapid/press-release_IP-16-4421_en.htm
Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment
and Competitiveness, said that ESIF played a vital role in strengthening the EU Single
Market, helping stats’ economies grow and supporting job creation and
innovation. He underlined that “blending Structural Funds with the European
Fund for Strategic Investments also allowed financing some riskier but promising
projects; that would encourage project promoters to consider this option”. Commissioner
for Regional Policy Corina Crețu mentioned that the number of EU-funded
projects in the EU states doubled during one year.
In addition, novelties introduced in the 2014-20 plan
allowed the EU funding include digital, social inclusion and environmental
projects.
New prerequisites contributed to a better environment for
investments
In March 2017, a first assessment of the new prerequisites to
successful investments (so-called ex-ante conditionalities*)
showed that these proved to be powerful incentives for reforms across a wide
variety of sectors – compliance with energy efficiency or public procurement
legislation, investment planning for innovation, transport or digital
technologies.
Note: term ex-ante (sometimes
written ex ante) is a phrase meaning "before the
event". Ex-ante is used most commonly in the commercial world,
where results of a particular action, or series of actions, are forecast in
advance (or intended). The opposite of ex-ante is ex-post
(actual) (or ex post). See
in: https://en.wikipedia.org/wiki/Ex-ante
*) Ex ante conditionalities (ExAC) are one of the key elements of the cohesion policy reform for 2014-20. They were introduced for the European Structural and Investment Funds (ESI Funds) to ensure that the necessary conditions for the effective and efficient use of ESI Funds are in place. These conditions are linked to:
1. policy and strategic frameworks, to ensure that the strategic documents at national and regional level which underpin ESI Funds investments are of high quality and in line with standards commonly agreed by Member States at EU level;
2. regulatory frameworks, to ensure that implementation of operations co-financed by ESI Funds complies with the EU acquis;
3. sufficient administrative and institutional capacity of public administration and stakeholders implementing the ESI Funds.
There are 7 general ExAC linked to the horizontal aspects of programme implementation and 29 thematic ExAC, which set out sector-specific conditions for relevant investment areas eligible for support under cohesion policy (so-called investment priorities).
http://ec.europa.eu/regional_policy/en/policy/what/glossary/e/ex-ante-conditionalities
For the post-2020 financing period, it is envisaged to
strengthen further the link between EU funds and the support to structural
reforms in the Member States, as outlined in the Commission's reflection paper on the future of EU finances**) and
in the Commission's proposals for the deepening of Europe's
Economic and Monetary Union (December 2017).
See:
http://www.baltic-course.com/eng/modern_eu/?doc=135767&ins_print;
**) on the EU finances, see Commission press release “EU
budget fit for tomorrow: Commission opens debate on the future of EU finances”,
in:
http://europa.eu/rapid/press-release_IP-17-1795_en.htm
= Less red-tape for the beneficiaries of the funds. The report mentions that the EU states have increasingly
been using the simplification opportunities of the 2014-20 Cohesion Policy
framework, namely: - online procedures in the management of the funds
("e-cohesion"), - simpler application processes for businesses
("single entry points") and simpler ways for beneficiaries to claim
reimbursements from the EU.
Simplification is also at the core of the reflection on the
architecture of the future Cohesion Policy, with the valuable input of the High Level Group on Simplification set by the
Commission.
= Smarter use of available resources led to an increased
mobilisation of private finance. In line with the Investment Plan's objective to mobilise more
investments, the 2014-20 framework was set up to support a more widespread use
of financial instruments. By the end of 2016, €13.3 billion under ESI Funds
programmes was committed to such instruments, mostly for SME support, research
and innovation and the low-carbon economy.
Over 76,000 businesses are currently supported by the ESI
funds through financial instruments. SME support projects selected so far under
the European Regional Development Fund (ERDF)
represent €11.5 billion of leveraged private financing, out of a target of €42
billion.
More information: = Factsheet - The European Structural and Investment Funds at work;
= The 2017 Strategic report on the implementation of the European
Structural and Investment Funds; = The
Cohesion Open Data Platform.
Reference:
http://europa.eu/rapid/press-release_IP-17-5201_en.htm;
Latvian version at:
http://europa.eu/rapid/press-release_IP-17-5201_lv.htm,
13.xii.2017