The document discusses proposed changes to EU Structural Fund regulations for 2014-2020. It summarizes feedback from the Nordic-European Public Investor Initiative, representing 11 national public investors, on increasing support for financial instruments to boost European competitiveness. Specific suggestions include aligning fund life cycles with programming periods, allowing follow-on investing beyond periods, adopting market-based management fees, and broadening the focus of managing authorities beyond individual member states. The initiative will submit a joint response to the EU Commission's consultation on the draft regulations.

1. Joint Policy Advice on drafted
Structural Fund Regulations for
2014-2020
NORDIC EUROPEAN
NORDIC-EUROPEAN PUBLIC INVESTOR INITIATIVE
30/11/2011
0

2. Background - new regulations EU Structural
Funds 2014-2020
EU policy and funding is most important for the development of new
innovative companies that can drive European growth
The European Commission has suggested new regulations for the
Program period of 2014 - 2020 in line with the EU 2020 strategy
Fewer investment priorities and an increase in the scale and scope in
the use of Financial Instruments
The regulations will be negotiated between the EU Commission and
the members states

3. Nordic-European Public Investor Initiative
p
11 national public investors: 3.2 BEURO under management:
1600 portfolio companies and the European Investment Fund
Members:
Owner: Associate member: Coordinator:

4. Nordic-European Public Investor Initiative
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Combined
C bi d experience and unique knowledge: Th members of
i d i k l d The b f
the Initiative have vast and long experience in investments from seed
to IPO and fund-of-funds
Country authorities: The members are the largest active investors,
opinion leaders and facilitators in their respected countries
Track record: The members have proof of a high level of innovation,
p g ,
growth creation, professionalism and governance, world class
success stories (and what does not work)
Collective voice: The Initiative would like to continue direct dialogue
with th C
ith the Commission
i i

5. Nordic-European/EC alignment
p / g
The
Th group fully supports any initiatives that creates a greater level of
f ll t i iti ti th t t t l l f
European competiveness
Financial engineering instruments as opposed to grants play a key
role in creating competitive European growth companies
Increasing the ERDF allocation to financial engineering instruments,
is welcomed
The group believes that market orientated principles should always be
applied
The group support the principle of maximising private investor
participation in equity financing instruments

6. Suggestions
gg
Implementation rules should b b
I l t ti l h ld be brought i t li with market practice
ht into line ith k t ti
We suggest:
- Remove discrepancy between Fund life cycles (11-12 years) and
Programming Period life cycles
- Possibility of follow on investing beyond end of Programming
Period
- Management fees should reflect market practice
- Managing A th iti should h
M i Authorities h ld have possibility t b d f
ibilit to broaden focus
beyond Member State level (encourage pan European funds)
- Eligible financing should include working capital needs of SMEs

7. Process going forward
g g
The I iti ti
Th Initiative will produce a written j i t response t th E
ill d itt joint to the European
Commission’s consultation on the draft Structural Funds Regulations
for 2014-2020
The members welcome the opportunity to a continued dialogue with
the EU Commission as the regulations develop