Special support instruments

JEREMIE - Joint European Resources for Micro to Medium Enterprises, is an initiative of the European Commission developed together with the European Investment Fund.  It promotes the use of financial engineering instruments to improve access to finance for SMEs via Structural Funds interventions.

EU countries can use part of their European structural fund allocationsto invest in revolving instruments such as venture capital, loan or guarantee funds.

These funds can support:

• creation of new business or expansion of existing ones;
• access to investment capital by enterprises (particularly SMEs) to modernise and diversify their activities, develop new products, secure and expand market access;
• business oriented research and development, technology transfer, innovation and entrepreneurship;
• technological modernisation of productive structures to help reach low carbon economy targets;
• productive investments which create and safeguard sustainable jobs

Contributions from the European Regional Development Fund (ERDF) are allocated to loan, guarantee or venture capital funds to invest in enterprises. These investments can take the form of equity, loans and/or guarantees.

Returns from investments are reinvested in enterprises. In this waay, a pool of funds can be re-used several times, recycling public funds, leveraging capital and increasing the sustainability and the impact of public resources allocated to SMEs.

Alternatively, managing authorities can decide to channel resources from the programme using Holding Funds (HFs) which are set up to invest in several investment funds. This is not compulsory, but does offer the advantage of enabling managing authorities to delegate some of the tasks required to implement JEREMIE to expert professionals.

• Sustainability - Financial engineering instruments are based on the provision of repayable assistance from the structural funds to investments, which should generate returns, and in this way pay back investors. This offers a more sustainable alternative to the assistance traditionally provided through grants.
• Leverage – combining structural funds with complementary sources of investment will boost resources and provide support to a larger number of enterprises.
• Flexibility – JEREMIE offers flexibility, both in terms of structure, and in the use of funds by way of either equity, debt or guarantee investment, which can be tailored to the specific needs of particular countries and regions.
• Expertise – JEREMIE enables structural fund managing authorities to benefit from the expertise from the banking and private sectors and so enhance the effectiveness of their investments in businesses.
• Partnerships – the partnership established between the Commission, EIF and EIB under JEREMIE can also act as a powerful catalyst for co-operation between countries, regions, EIF, EIB, other banks and investors to address access to finance for enterprises, primarily SMEs..  

The JEREMIE Networking Platform was launched in 2009 by the Commission (DG Regional Policy) in co-operation with the EIF to support the implementation of JEREMIE.

• 27-28 October 2011: 3rd Annual Conference - JEREMIE and JESSICA: Delivering results
• 20 May 2011: Fifth Plenary Meeting - JEREMIE Networking Platform
• 29-30 November 2010: JEREMIE & JESSICA: Towards successful implementation
• 22-23 October 2009: Conference on JEREMIE & JESSICA: Innovative financial instruments in EU Cohesion Policy

• Memorandum of understanding between the European Commission and  European Investment Fund: "A coordinated approach to improving access to finance for micro to medium enterprises in the regions supported by European Regional Development Fund (ERDF)"
• Executive Summaries of evaluations studies on SME access to finance in EU Member States/regions (carried out by the EIF)
• Horizontal study - Handbook on JEREMIE holding fund operational procedures
• Legislative provisions and guidance notes (July 2007 – December 2008 - February 2011 ) related to the financial engineering instruments.
• JEREMIE implementation in the EU Member States. State of play (November 2011)
• Financial Engineering Instruments Implemented by Member States with ERDF Contributions. Synthesis Report Annexes
• Financial Instruments in Cohesion Policy - SWD(2012) 36 final Commission staff working document, 27/02/2012
• Summary report on the progress made in financing and implementing financial engineering instruments co-financed by Structural Funds. Programming period 2007-2013 (Situation as at 31 December 2011)
  • Annex 1
  • Annex 2
• Financial Instruments: A Stock-taking Exercise in Preparation for the 2014-2020 Programming Period