Increasing market acceptance – ELTI position paper on the targeted recast of the EU Financial Regulation
Year: 2022
Content-Type: Research Paper
Description: On 16 May 2022 the European Commission published a targeted amendment of the EU Financial Regulation, “aiming to strike the right balance by focusing on changes that are really necessary” and included “targeted improvements”, not least on “strengthening the protection of the Union financial interests”. Due to the absence of impact assessment the effect of the proposed changes on EU Financial Instruments and the benefit of a greater reliance on Implementing Partners was not estimated. Such an assessment would have demonstrated that some of the proposed changes will de facto strongly discourage and consequently slow down the use of EU Financial Instruments, especially for SMEs and small-scale projects. Additionally, some proposals considerably reduce the discretion of the legislator in terms of crisis policy tools and instruments such as REPowerEU. In this context, the ELTI association would like to highlight proposals, as outlined further below, based on the practical experience of National Promotional Banks and Institutions (NPBIs) which are implementing partners (IPs) of EU funds, operating directly and/or with financial intermediaries.
Pages: 20 pages
Author: ELTI
Categories: Development, Finance, Public banks, Publications, Risk, SMEs, Sustainability
Tags: Development, Development Banks, Finance, Risk Management, SMEs