Key features of the new legal and policy framework?
To encourage and increase the use of financial instruments in cohesion policy in 2014-2020 programming period, the new legal and policy framework:
- offers greater flexibility to EU Member States and regions in terms of target sectors and implementation structures;
- provides a stable implementation framework founded on a clear and detailed set of rules, building on existing guidance and experiences on the ground;
- captures synergies between financial instruments and other forms of support, such as grants; and
- ensures compatibility with financial instruments set up and implemented at EU level under indirect management rules.
The common provision regulation includes a separate section on financial instruments - Title IV (Articles 37 to 46), allowing for a clearer presentation of the instruments' specificities and regulatory requirements. Furthermore, implementation details are laid down in related secondary legislation (Delegated Acts and Implementing Acts).
There will therefore be a single set of rules governing financial instruments for all five ESI Funds, ensuring consistency with the provisions of the Financial Regulation.