ESF+ financial instruments. Handbook
This handbook provides comprehensive guidance on setting up and implementing financial instruments under the European Social Fund Plus (ESF+) to support employment, education and social inclusion. Developed to assist ESF+ managing authorities and other relevant stakeholders, the handbook highlights the potential offered by financial instruments to enable sustainable funding solutions and maximise social impact. The publication describes why financial instruments are relevant tool for achieving ESF+ objectives and how to make the most of their use. With practical insights and examples, the handbook covers key steps in designing, implementing, and managing financial instruments across the ESF+ policy areas, addressing varied needs of final recipients. This resource is essential for stakeholders looking to enhance the efficiency and impact of ESF+ investments through financial tools.
Financial instruments are particularly appropriate for improving job opportunities and contributing to self-employment in specific target groups such as the long-term unemployed, migrants, women, people over 50, and young people, who have a hard time finding a job, but are willing to run an entrepreneurial activity.
In the 2021-2027 programming period, the proportion of the ESF+ resources allocated to financial instruments for employment purposes is significant: EUR 539 million in five countries (Italy – 273 million, Poland – 125 million, Romania – 80 million, Croatia – 42.5 million, France – 15 million).
Most of the allocated resources (nearly 69%) are for loan products, 8.9% for guarantees and 2% for equity and quasi-equity; around 20.5% is for grants combined within a financial instrument operation.
The handbook is rich with examples of the financial instruments in the past programming period, including a capped portfolio guarantee for microloans in Bulgaria, mezzanine capital in Germany, microloan products combined with grants in Italy, the national fund for social entrepreneurship in Poland and a first-loss portfolio guarantee in Slovakia.
