Implementation of grants and financial instruments combined in a single operation

The second fi-compass Knowledge Hub on combination took place in April 2023. Experts from Member States joined colleagues from the European Commission and European Investment Bank to discuss the key topics that have arisen in relation to the implementation of financial instruments combined with grants in a single operation.

The rules for combining financial instruments with grants under Article 58(5) of the Common Provisions Regulation 2021/1060 are designed to simplify and expand the use of combination of FI and grant in one operation under financial instruments rules. In addition to technical support, guarantee fee and interest rate subsidies (which were permitted in the 2014-2020 programming period), bodies implementing financial instruments can be entrusted to provide grants that are necessary and directly linked to financial instruments, to meet part of the investment costs, whether by way of up-front capital grant or rebate.

The Note captures the experiences and lessons learned exchanged between participants at the event and provides a helpful insight into this key topic for financial instruments in the 2021-2027 programming period.