Publication

This report analyzes the proposed expansion of innovative financial instruments in the EU Multiannual Financial Framework for the 2014–20 period. It presents the economic rationale, governance principles and criteria that these instruments should follow and compares these with proposals from the European Commission. According to the authors, innovative financial instruments allow for EU financial support to expand considerably by mobilising funding from public and private financial institutions with limited risk and low levels of resources. Based on this assessment, the paper makes recommendations, calling for better governance structures and an expansion of the efficiency and multiplier effects.