Ex-ante assessment methodology for financial instruments in the 2014-2020 programming period: General methodology covering all thematic objectives - Volume I

This methodology is intended as a toolbox encompassing good practices and providing practical guidance to Managing Authorities (MAs) in the preparation and the realisation of the ex-ante assessment of the financial instrument (FI) envisaged in the Programme(s).

This methodology is a reply of the Commission to the frequent questions from the managing authorities on the particular elements of ex-ante assessment included in Article 37 (2) of the Common Provisions Regulation (CPR). The formal status of this methodology has no legal value and it is not binding for managing authorities.

FIs shall be implemented to support investments which are expected to be financially viable but do not receive sufficient funding from market sources.

The ex-ante assessment is necessary (i) for the setting up of an FI or (ii) the continuation of an FI as far as it comprises a contribution from European Structural and Investment Funds (ESIF) 2014-2020 and follows the requirements of Article 37 (2) of the CPR.

The ex-ante assessment aims to ensure that ESI Funds resources allocations to FIs are fully aligned with the objectives of ESI Funds and Programmes and are used in accordance with the principles of sound financial management. The ex-ante assessment should allow MAs to tackle high-priority market gaps and to define the priorities for the allocation of public resources in accordance with Programmes and priority axis.

Article 37 (2) of the CPR articulates the required content of an ex-ante assessment around seven main groups, namely:

a) Analysis of market failures or suboptimal investment situations and the estimated level and scope of public investment needs;

b) Assessment of the value added of the FI, consistency with other forms of public intervention in the same market and possible State aid implications;

c) Estimate of additional public and private resources to be potentially raised by the FI, including assessment of preferential remuneration when needed;

d) Identification of lessons learnt from similar instruments and ex-ante assessments carried out in the past;

e) Proposed investment strategy, including an assessment of its possible combination with grant support, options for implementation arrangements, financial products and target groups;

f) Specification of expected results including measurement of indicators;

g) Provisions allowing the ex-ante assessment to be reviewed and updated.