Unlocking the full potential of EU investments: Introducing the EAPB Toolbox on Financial Instruments

As the debate on the future Multiannual Financial Framework (MFF) enters a decisive phase, the need for efficient and impactful funding mechanisms has never been more critical.

The EAPB has released the EAPB Toolbox on Financial Instruments—a comprehensive guide bringing together the best practices of public promotional banks across Europe. This publication is our contribution to ensuring the next MFF truly delivers on its ambitions for investment and cohesion.

Why this matters now:At the EAPB, we believe prioritising financial instruments—where appropriate—is the most effective way to maximise the impact of the EU budget. In line with the recommendations of the Draghi Report, this approach helps attract private investment and bridge the gap between policy and reality on the ground.

Our key recommendations for a more efficient MFF:? Reverse the burden of proof: Grants remain vital, but their use should be properly justified. Managing authorities should explain why a grant is chosen over a financial instrument.

- Simplify the process: We welcome the removal of mandatory ex-ante assessments. However, full justifications within plans risk recreating administrative burdens. The logic should favour instruments unless proven otherwise.
- Integrate NPBs early: With our long-standing expertise, National Promotional Banks must be involved from the programming stage to tailor instruments to market needs and maximise local impact.
- Protect "evergreen" funds: The proposed eight-year limit on reflows could divert resources from regional reinvestment. Reflows should remain dedicated to Cohesion Policy objectives.
- Introduce sustainable thresholds: Minimum targets for financial instruments in key policy areas—adapted to territorial specifics—would strengthen predictability and accelerate implementation.

This Toolbox illustrates that when properly designed and deployed, financial instruments can amplify EU funding, provide higher leverage, and ensure lasting value for our territories.

We hope you find this publication insightful and useful as a contribution to the ongoing debate on the future of EU investment policy.

Public banks stand ready to deploy these tools on the ground, turning policy ambition into tangible results for citizens and businesses across Europe.

Read the full report here

#EAPB #PublicBanks #CohesionPolicy #SustainableFinance #MFF #EUFunds #DraghiReport