Financial instruments in Cohesion policy

This Special Report examines how financial instruments are used within EU Cohesion policy and assesses whether their key advantage – the revolving use of public funds – has been achieved in practice. Financial instruments, such as loans, guarantees and equity investments, are intended to allow EU funds to be reused as repayments and returns (“reflows”) are generated, thereby supporting more projects over time compared to one-off grants. The report analyses how this principle has worked across the 2007–2013, 2014–2020 and early 2021–2027 programming periods. 

The findings are intended to inform the design and implementation of financial instruments beyond 2027, with a focus on achieving more sustainable use of EU public resources.