When addressing the informal ministerial meeting for ministers responsible of Cohesion Policy in Riga, Latvia, Parliamentary Secretary for EU Funds and EU Presidency 2017 Ian Borg spoke about the benefits surrounding financial instruments and the potential they offer to stimulate private sector investment.

Dr Borg said that financial instruments offer a chance to stimulate additional outlays.  The experience under the previous programmes has taught us a lot and has led to commitments being made under the 2014-20 programme which we fully believe in, he explained.  

Dr Borg also pointed out however, that whilst financial instruments may be one of the tools to drive us forward, this may not be the only solution for all areas.  A mix of financial instruments and incentives (intended as grants) is what we are presently looking at, said Parliamentary Secretary Borg, as he remained confident that these efforts will give private investors as well as small & medium sized enterprises the right platform to expand and to grow.

During the meeting, the EU Commission also expressed its satisfaction that Malta and Spain were the first 2 countries that will be adopting the SME Initiative.  In fact, this is an initiative that will be on offer to SMEs in the coming months as Dr Borg said talks are currently underway to ensure a legal framework that is kept simple and free of excessive administrative burdens, within which set financial instruments can operate.

In his concluding remarks Dr Borg also referred to the ultimate objective of the Cohesion Policy that is to reduce European regional disparities which should always remain central even whilst reforming the new regulations.

The meeting which is being chaired by the Latvian Minister for Finance, Janis Reirs, is attended by all EU Cohesion Ministers and EU Commissioner Corina Cretu.