Innovative Financial Instruments in EU Funding Schemes

• Authors: Eva Branten , Alari Purju
• Languages of publication: EN

Abstracts

EN

Innovative financial instruments, in the context of the funding schemes of the European Union, are different from funding by way of direct subsidies. These financial instruments can be divided in two large groups: instruments offering risk capital and equity capital and debt instruments. The instruments help to engage resources from the private sector in projects which might be considered too risky without the said instruments and the implementation of which would be impossible or related to significantly higher expenses for the promoter of the project. As seen from Estonia’s perspective, up until now the use and impact of innovative financial instruments have generally met the expectations. In view of the diversity of areas and target groups of the innovative financial instruments planned within the framework of European Union’s Financial Framework 2014-2020, it may be presumed that several new instruments will be successfully implemented in Estonia.

Keywords

EN

debt instruments; European Union’s funding schemes; innovative financial instruments; multiplier effect; social cost-benefit analysis

• Publisher: Sciendo
• Journal: Baltic Journal of European Studies
• Year: 2013
• Volume: 3
• Issue: 1
• Pages: 121-135

Dates

published

2013-06-01

online

2013-06-18

Contributors

author

Eva Branten

• Department of Public Economics, Tallinn University of Technology Akadeemia tee 3, Tallinn 12618, Estonia

author

Alari Purju

• Department of Public Economics, Tallinn University of Technology Akadeemia tee 3, Tallinn 12618, Estonia

References

• Approval of programme (2009), Programmi “Ettevõtjate laenukapitali kättesaadavuse parandamise täiendav tugiprogramm” kinnitamine (2009) [Approval of programme “Additional support programme enhancing availability of the entrepreneurs’ loan capital”; in Estonian]. Regulation of the Ministry of Economy and Communication in Estonia as of 2 April 2009, no. 101.
• Bain, R. & Robinson, N. (2011), The Implications of EIB and EBRD Co-financing forthe EU Budget, Brussels: European Parliament’s Committee on Budgets. Retrieved from http://www.polis.leeds.ac.uk/assets/files/Staff/eu-budget-report-11-robinson. pdf [accessed 2 May 2012]
• Boardman, A. E.; Greenberg, D. H.; Vining, A. R. & Weimer, D. L. (2006), Cost-Benefit Analysis: Concepts and Practice, 2nd edition, New Jersey: Pearson Prentice Hall.
• Bozeman, B. & Rogers, J. (2001), ‘Strategic management of government-sponsored R&D portfolios,’ Environment and Planning C: Government and Policy, vol. 19, pp. 413-442. http://dx.doi.org/10.1068/c1v[Crossref]
• Commission of the European Communities (2009). Mobilising Private and PublicInvestment for Recovery and Long Term Structural Change: Developing PublicPrivate Partnerships. Retrieved from http://eur.lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2009:0615:FIN:en:PDF [accessed 2 May 2012]
• EU (2010), Opinion of the Committee of the Regions on “Progress Microfinance Facility,” Official Journal of European Union, no. 79, pp. 71-79.
• European Commission (2011a), A Framework for the Next Generation of InnovativeFinancial Instruments - the EU Equity and Debt Platforms. Retrieved from http://ec.europa.eu/economy_finance/financial_operations/investment/europe_2020/ documents/com2011_662_en.pdf [accessed 7 Mar 2012]
• -- (2011b), A Pilot for the Europe 2020 Project Bond Initiaitve. Retrieved from http://ec.europa.eu/economy_finance/financial_operations/investment/europe_2020/documents/com2011_6_en.pdf [accessed 30 Jan 2012]
• -- (2011c), Excecutive Summary of the Impact Assessment (A Pilot forthe Europe 2020 Project Bond Initiative). Retrieved from http://ec.europa.eu/economy_finance/financial_operations/investment/europe_2020/documents/sec2011_1239_en.pdf [accessed 10 March 2012]
• -- (2011d), New Public-Private Partnerships for Research in the Manufacturing,Construction and Automotive Sectors, Luxembourg: Publications Office of the European Union.
• -- (2011e), Proposal for a Regulation of the European Parliament and of thecouncil amending Decision No 1639/2006/EC establishing a Competitivenessand Innovation Framework Programme (2007-2013) and Regulation (EC) No680/2007 laying down general rules for the granting of Community financialaid in the field of the trans-European transport and energy networks. Retrieved from http://ec.europa.eu/economy_finance/financial_operations/investment/europe_2020/documents/com2011_659_en.pdf [accessed 15 Feb 2012]
• Turhani, A. & Shqau, G. (2011), ‘Public-Private Partnerships-For and Against,’ China-USA Business Review, vol. 10, no. 9, pp. 893-898.

Identifiers

DOI

10.2478/bjes-2013-0007