Implementation of financial instruments in the Czech Republic and in Slovakia

Financial instruments under the European Structural and Investment Funds (ESIF) are increasingly used in the Czech Republic and Slovakia to support the economic and social development in the two countries. To exchange experiences about such instruments, more than 80 participants met at the fi-compass workshop ‘Implementation of financial instruments in the Czech Republic and in Slovakia’ on 21 and 22 May 2019 in Prague, Czech Republic.

This fi-compass workshop was developed in cooperation with Directorate-General for Regional and Urban Policy (DG REGIO) as well as the Ministry of Regional Development of the Czech Republic and brought together managing authorities and other stakeholders involved in ESIF financial instruments in the Czech Republic and in Slovakia to discuss how such instruments can be deployed in a number of specific areas and sectors.

Day 1 – Project examples of final recipients supported through ESIF equity instruments

The workshop opened on day 1 with a presentation of examples of projects supported by ESIF financial instruments, introduced by representatives of the Czech and Slovak National Promotional Banks and Institutions (NPBIs): Vilém Řehák from the Czech-Moravian Guarantee and Development Bank (CMZRB), Czech Republic and Roman Dojčák from the Slovak Investment Holding. Exchanges between peers as well as speakers were encouraged on day 1 through get-to-know and networking opportunities.

Day 2 – Identifying key challenges and discussing solutions for specific implementation sectors

Jonathan Denness, Head of Financial Instruments and International Financial Institutions Relations Unit, DG REGIO, European Commission, Klára Droznová, Director, National Coordination Authority – Management and Coordination of EU funds department, Ministry of Regional Development, Czech Republic and Martin Polónyi, Director, Coordinating Body for Financial Instruments, Ministry of Finance, Slovakia welcomed participants on day 2, highlighting the advantages of using ESIF financial instruments, the current results in the Czech Republic and Slovakia and the plans of the two countries to deploy further financial instruments in the future.

The subsequent parallel discussion sessions provided participants from the involved authorities in both countries a platform for targeted exchanges with peers, European Commission representatives and the fi-compass team, focusing on specific implementation areas:

• Financial instruments supporting energy efficiency and EPC schemes under ESIF,
• Financial instruments for social entrepreneurship and student loans (as part of the fi-compass Capacity Building Services (CBS),
• Financial instruments supporting environment, including waste and water management,
• Financial instruments supporting energy efficiency in public and private buildings and SMEs,
• Financial instruments supporting infrastructure PPP, intermodal transport terminals, electric vehicle charging and green transport, and
• Financial instruments supporting urban development, including brownfield regeneration and social housing.

These sessions aimed at identifying key implementation challenges in these particular sectors and agreeing on possible solutions and next steps to progress with the implementation in practice. To set the scene for each discussion session, representatives from Czech Republic and Slovak authorities presented the state of play of financial instruments in these specific areas. Relevant examples from other countries were also discussed. The results of each session were presented by Czech and Slovak representatives to the full audience.

The event finished with a positive note that much can still be achieved in this programming period in both countries with ESIF financial instruments. It is important to focus on pro-active cooperation between the relevant authorities in order to successfully implement the foreseen financial instruments still in the current programming period while preparing in the same time for post-2020. Continuous awareness raising such as this fi-compass workshop helps authorities to understand why financial instruments can be in some areas more suitable and effective than grants and to prepare them for the shift towards financial instruments in particular areas post-2020.