Future EU funding: regions get ready for financial engineering

Economic and political trends (deficits, budget consolidation) indicate that, in the future, all measures that increase the leveraging of public spending will be of growing interest to public policy makers. EU financial engineering instruments are one way of channelling more money into our regions.

This new trend poses many political questions and challenges the traditional “subsidy-oriented” way of supporting territorial development in Europe.

On the occasion of its plenary meeting in Republika Sprska (BH), AER Committee 1 provided its members with an overview of the current EU offer in the field of financial engineering instruments. The main stakes of this shift from grants to loans were explored, on the basis of the first conclusions of AER’s detailed 9 months investigation and consultation among members. Two topics where financial instruments have been or may be soon introduced: energy and climate change, and enlargement funds were examined more into detail.