THE FIN-EN PROJECT Paolo Zaggia – Finlombarda SpA Head of Europe Department «Fin-en Project starts from the awareness of the absolute innovation that the Financial Instruments, implemented by European Structural Investment Funds, are bringing in the process of Capacity Building of the Public Administration»

THE FIN-EN NETWORK OBJECTIVE To enhance co-operation among EU regions on the implementation of Financial Instruments (FIs) under EU Structural Funds, by sharing concrete solutions on common issues related to the overall life cycle of FIs (programming, implementation and monitoring and evaluation). PARTNERSHIP 13 Partners from 13 EU Countries (BE, DK, FR, DE, GR, HU, IT, LT, LI, PT, SI, ES, UK), and 3 Observer Institutions (DE, BG, MT), managing FEIs for SME in 2007-2013 (5 Managing Authorities, 7 Fund Managers, 1 European Association), for a total budget of about 3,5 Billion Euros. OUTPUT 1 Data Base (with quantitative and qualitative information, complementary with monitoring system of EC SFC2007), 3 Reports with several good practices (14) for each phase of the implementation process and 3 Study visit, 11 Implementation Plans, 1 Guidelines for the implementation of FIs. TIMING 36 months (Kick off: March 2012) TOTAL BUDGET 1,9 Million Euros.

FIs covering the entire lifecycle of SME 45 FI EXPERIENCES IN SUPPORT OF SMES IN 2007-2013 17.376 Final Beneficiaries High use of Combined FI Significant private co-funding 7 5 Competitive Regions/MS 3 3 2 FIs covering the entire lifecycle of SME Equity - 7pp Loans - 7pp Guarantees - 4pp Combined - 10pp 8+1 Convergence Regions/MS 4 6 7 ERDF co-financing ESF co-financing 13 Training services, consultancy Without Holding Fund

Technical Advisory Committee METHODOLOGY 1 DB 3 TWG 1. PROGRAMMING FLEXIBILITY: JEREMIE Fondo Multiinstrumento (Andalucia); Midtjysk Iværksætterfond (Central Denmark). LEVERAGE New Hungary Venture Capital Programmes (Hungary); North West Fund (West England) …. 2. IMPLEMENTING SELECTION PROCESSING FRIM FESR for Financial Intermediaries (Lombardy region); JEREMIE for Fund Manager (Auvergne Region); .... 3. MONITORING CHECKS Credit line combined with guarantee (Portugal) IT SYSTEM North West Fund (West England); FRIM FESR (Lombardy Region) ….. Technical Advisory Committee 3 STUDY VISIT Auvergne Portugal West England 11 IMPLEMENTATION PLAN 1 GUIDELINES FOR THE IMPLEMENTATION OF FINANCIAL INSTRUMENTS

HIGHLIGHTS Guarantees Simple to design and administer Require less capital outlay Useful where there is credit rationing Cost-effective way to create employment X Claims unpredictable and additionality difficult to determine Loans Well-established policy option Most commonly used form of finance by SMEs Straightforward with predictable returns Can include microcredit aimed at those usually excluded from access X Potential crowding–out of private sector garanzia semplice da programmare e amministrare richiede un minor esborso di capitale utile nel caso di razionamento del credito una modalita’ efficace di creare occupazione x   richieste di escussione imprevedibili e addizionalita’ difficile da determinare  prestito un’opzione di policy ben afermata usata comunemente per finanziare le pmi trasparente con rientri prevedibili puo’ includere il microcredito rivolto a coloro che generalmente sono esclusi dall’accesso al credito x    potenziale esclusione del settore privato equity altamente specializzato gli investitori acquisiscono una parte di controllo sulla gestione adatto a forme innovative con un alto potenziale di crescita (es.start-up) potenziale generazione di guadagni elevati x    complesso, rischioso e con guadagni non prevedibili combinati comprendono il fondo perduto e modalita’ di supporto ‘leggero’, possono offrire soluzioni flessibili e su misura Equity Highly specialised Investor gains some management control For innovative forms with high growth potential Potential to generate high returns X Complex, risky and returns unpredictable Combined FI Including grants and ‘soft’ support can offer flexible & tailored solutions

FI FINANCIAL INSTRUMENTS with EUROPEAN FUNDS 1 EUROPEAN FUNDS A “BUSINESS” IN “MARKET FAILURE AREAS” BETWEEN 2 WORLDS WITH DIFFERENT RULES 1 EUROPEAN FUNDS with State Aid/Stability Pact RULES 2 FINANCIAL MARKET with Basilea III RULES PRIVATE RESOURCES FI STRUCTURAL INVESTMENT FUNDS 2014-2020 Amount € 222 Billion of which a small % to Financial Instruments in Public Planning MARKET FAILURE AREA NEEDS CLEAR RULES from the beginning of programming period and their interpretation at local level FLEXIBILITY OF GOVERNANCE to facilitate involvement of private in «horizontal subsidiarity» SPECIFIC AND CONTINUATIVE ASSISTANCE to the Public Managing Authorities during the entire cycle of the implementing process of Financial Instruments

Thanks for your attention! paolo.zaggia@finlombarda.it