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Local financing in rural areas

“Rural Innovation”
Dossier n° 9
LEADER European Observatory
September 2000



Chapter 1: Local financing - needs and issues

  • 1.1 Financing, a form of partnership
  • 1.2 Gap between funding supply and demand
  • 1.3 Possible ways to bridge the gap between funding supply and demand
  • 1.4 Choosing the right financial instruments
  • 1.5 Conclusion

Chapter 2: Current funding provision

  • 2.1 Commercial banking sector
  • 2.2 Facilitation and mediation systems
  • 2.3 Alternative financing sector
  • 2.4 Conclusion

Chapter 3: Achievements and limitations of LEADER experiences

  • 3.1 Application of decentralized financial decision-making
  • 3.2 Local partnership, a lever for securing bank finance
  • 3.3 Application of Structural Fund regulations concerning financial engineering
  • 3.4 Conclusion

Chapter 4: Challenges for the future

  • 4.1 Financing formulas that have already been fully explored
  • 4.2 Financing formulas cursorily explored by a few LEADER groups
  • 4.3 Financing formulas as yet unexplored by LEADER


This dossier, drafted by Gilda Farrell
(Deputy Director of the LEADER European
Observatory) and Samuel Thirion (INDE, Portugal)
between September 1995 and March 2000),
reflects some of the conclusions of the
LEADER seminar held in Tarazona (Aragon, Spain)
in January 1999. It supplements these
conclusions by presenting a series of local
financing formulas that have been tested in
both urban and rural areas, whilst also
considering developments in the way the
LEADER Initiative has been implemented in
the different European countries. The authors
thank Christophe Guene from INAISE for his
comments. Jean-Luc Janot (LEADER European
Observatory) revised the final text.
Production coordination: Christine Charlier
(LEADER European Observatory).

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