In 2021, the fi-compass support for ERDF/CF financial instruments broke new ground with the launch of its Member State Specific support programme. Under this scheme, tailored support is provided to one or more managing authorities to help build their capacity to work with financial instruments and/or to address specific issues affecting the implementation of new financial instruments.
Following the launch of this new type of event for ERDF/CF authorities, a range of different types of support was provided to a total of ten managing authorities in two Member States. This activity is expected to grow considerably in 2022 as more managing authorities move to implement their new programmes. Managing authorities interested in receiving support under the fi-compass Member State Specific support programme should contact their European Commission counterparts in their ERDF geographical unit to discuss.
The combination of financial instruments with grant in a single operation was the subject of several fi-compass activities. Having featured in a Knowledge Hub and the ERDF conference at the end of 2020, a major new factsheet was published in 2021 providing significant insight as to the new flexibilities and how they can be deployed in sectors including SMEs, research and development and energy efficiency. This is expected to remain a topic of key interest for managing authorities as they design their financial instruments in the 2021-2027 period.
Two Knowledge Hub events were held in 2021. The first brought together expert practitioners to discuss the audit and control of financial instruments in the 2014-2020 period, including consideration of the new audit methodology. The event and subsequent note of the meeting emphasised the need for an approach based on a ‘reasonable assurance’ model with parties coordinating activities to avoid audit and control being excessively burdensome.
The diversity of the financial instruments implemented by FMFIB is testimony to the expertise developed within that organisation which in turn significantly boosts the capacity within the country to use financial instruments under EU shared management funds.
In addition, 2021 saw the publication of a new case study featuring the Fund Manager of Financial Instruments in Bulgaria (FMFIB) and its financial instruments set up under ERDF. The case study described both the work to set up FMFIB, which acts as the Fund of Funds manager and the financial instruments set up to provide equity finance for high growth companies and loan finance for urban development. The diversity of the financial instruments implemented by FMFIB is testimony to the expertise developed within that organisation which in turn significantly boosts the capacity within the country to use financial instruments under EU shared management funds.
Two video case studies were also published to complement the FMFIB case study.
In addition, a second video case study was produced that highlights the impact of the equity financial instruments set up in Berlin, Germany by Investitionsbank Berlin (IBB) and its Venture Capital fund manager subsidiary IBB Ventures.
The videos highlight successful projects supported by the ERDF backed financial instruments and provide an insight to the wider benefits to the region’s investment ecosystem achieved by the stakeholders involved.