eu funds ukraine 1.4 update nov 2014
DESCRIPTION
EU FUNDS UKRAINE 2014-2020TRANSCRIPT
funding & financing
your projectUKRAINE
November 2014
HUDSON FINANCIAL
INCENTIVES
1. Established in 2000 NL
2. Working throughout Europe since 2004
3. 10 years of experience in 20 countries
4. Cooperation ageements in another 15 countries
5. EU FUNDS, EIB, IPA, PHARE, FDI & TAX
Incentives
Employment
• 75% of the 20-64 year-olds employed
• R&D / innovation
• 3% of the EU's GDP (public and private combined) to be invested in R&D/innovation
Climate change / energy
• greenhouse gas emissions 20% (or even 30%, if the conditions are right) lower than 1990
• 20% of energy from renewables & 20% increase in energy efficiency
Education
• Reducing school drop-out rates below 10% & at least 40% of 30-34–year-olds completing third level education
Poverty / social exclusion
• at least 20 million fewer people in or at risk of poverty and social exclusion
NEIGBOURHOOD POLICIES
EU 2020 targets
HOW TO APPROACH
FUNDING?
1. - ERR (ECONOMIC RATE OF RETURN
2. - IRR (PROFITABILITY)
3. - RISKS
Financing solutions
Economic&
SocialBenefit Financial Profitability Risk level
VC
BanksER
RH
IGH
IRRHIGH
IRRLOW /
MEDIUM
IRR Negative
RISK HIGH
RISK MEDIUM
RISK LOW
RISK HIGH
RISKLOW / MEDIUM
Grants & Tax Incentives EU & National
GRANT TAX Incentives Revolving funds
5
EU &
N
atio
nalEIB facilities
EIB LOAN / Guarantees / PDA, Innovfin
The Hudson ®
model
N/A Medium
AID & SUPPORT
GRANT
│ 6
Budget EU(eligibility simulation)
3 categoriesof regions
< 75 % of EU average
GDP/capita*
*index EU27=100
75-90 %> 90 %
Less developed regions
Transition regions
More developed regions
Regional GDP figures: 2006-07-08© EuroGeographics Association for the administrative boundaries
EU BUDGET -> UKRAINE
EU “NEIGHBOURS”
2013
In mid-2013 the EU-Ukraine Council endorsedan updated EU-Ukraine Association Agenda , designed to pave the way for the AssociationAgreement and the Deep and Comprehensive Free Trade Area (DCFTA ).
2014
On 5 March 2014 the European Commission agreed on a financial assistance package of at least EUR 11 bn in loans and grants from the EU budget and EU-based international financial institutions, to:
• help stabilise Ukraine's economic & financial situation• support transition• encourage political & economic reforms• support inclusive development.
2014
After signing the political chapters of the EU-Ukraine Association Agreementat the EU summit of 21 March2014, both parties signed the remaining sections of the Agreement - including the Deep and Comprehensive Free Trade Area (DCFTA) - in the margins of the EU summit of 27 June 2014. Ukraine is expected to ratify the Agreement later this year. The aim is to start applyingcertain provisions (including nearly all the DCFTA section) provisionally from 1 November 2014.
EASTERN PARTNERSHIP
Launched in 2009B is a joint initiative between the EU, EU countries and the eastern European partner countries. It enables partner countries interested in moving towards the EU and increasing political, economic and cultural links to do so. It is underpinned by a shared commitment to international law and fundamental values - democracy, the rule of law and respect for human rights and fundamental freedoms - and to the market economy, sustainabledevelopment and good governance. The EU has put forward concrete ideas for each partner country. The aim is toimprove relations with individual countries.
The Partnership:
• promotes democracy and good governance
• strengthens energy security
• promotes sector reform and environment protection
• encourages people-to-people contacts
• supports economic and social development
• provides additional funding for projects to reduce social inequality and increase stability.
Common valuesPartnership
The Partnership is based on common values: • Democracy and the rule of law• Respect for human rights and freedoms• Commitment to market economyTWO DIMENSIONS1. Bilateral: developing closer cooperation between EU
and partner country 2. Multilateral: bringing partners closer within
framework for exchange and cooperation
6 bilateral aspects:
• 1. New contractual relations2. Integration into EU economy3. Easier travel to the EU4. Energy and transport cooperation
• 5. Economic and social development
• 6. Financialsupport
Multilateral Platforms -2014-2017
• Platform 1 - "Democracy, Good governanceand Stability"
• Platform 2 - "Economic Integration andConvergence with EU Policies"
• Platform 3 - "Energy Security"
• Platform 4 - "Contacts between people"
ENERGY & ECONOMY
• Improved infrastructure interconnection Integration of energy marketsand transport services
• Enhanced cooperation among partners • Reduce regional disparities• Support agriculture, rural development, • institution building• Based on EU cohesion funds model• Association Agreement implementation• Institutional capacity building • Reforms through increased levels of funding based on political
commitment
FUNDING OPPORTUNITIES
DIRECT FUNDING (next sheet)ErasmusNeighbourhood investment facilityEIDHRCross border cooperationHorizon 2020Culture programme
EU-Ukraine – A European Agenda for Reform
The 23 June Foreign Affairs Council agreement to establish a Common Security and Defence Policy mission to assist Ukraine in the field of civilian security sector reform, including police and rule of law.
The new “State Building Contract” programme signed on 13 May, worth €355 million, plus €10 million to support civil society, which will help the governmentof Ukraine to address short-term economic stabilisation needs and implementgovernance reforms in order to promote inclusive socio-economic development.
The approval of an emergency Macro-Financial Assistance (MFA) loan programmefor Ukraine of up to €1 billion. It complemented an existing MFA package of up to€610 million, bringing the total EU assistance under this financial instrument to€1.61 billion.
EU-Ukraine – A European Agenda for Reform
The disbursements under the two MFA programmes totalled €600 million as of 17 June.
Autonomous trade measures granted by the EU to Ukraine on the eliminationor reduction of customs duties on a large number of goods originating in Ukraine – which is in force since 23 April, worth nearly €500 million per yearin tariff reductions.
The signature of the Memorandum of Understanding enabling gas flows fromSlovakia to Ukraine which was an important first step to diversify Ukraine’ssources of gas supply.
EC Documents
• http://ec.europa.eu/commission_2010-2014/fule/docs/ukraine/a_european_agenda_for_reform.pdf• http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/145789.pdf• http://eeas.europa.eu/eastern/docs/eap_vilnius_ppt_201113_en.pdf• http://eeas.europa.eu/eastern/platforms/docs/work_programme_2014_2017_platform1_en.pdf• http://eeas.europa.eu/eastern/docs/eap_vilnius_ppt_201113_en.pdf• http://www.eeas.europa.eu/statements/docs/2014/140612_01_en.pdf• http://www.eeas.europa.eu/ukraine/• http://www.eeas.europa.eu/statements/docs/2014/140514_02_en.pdf• http://www.eeas.europa.eu/statements/docs/2014/140514_02_en.pdf• http://www.eeas.europa.eu/statements/docs/2014/140514_02_en.pdf• http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/145218.pdf• http://www.eeas.europa.eu/csdp/missions-and-operations/euam-ukraine/press-releases/index_en.htm• http://eeas.europa.eu/eastern/platforms/140228_calendar_multilateral_events_eap_2014_en.pdf• http://eeas.europa.eu/eastern/initiatives/index_en.htm• http://eeas.europa.eu/eastern/platforms/docs/work_programme_2014_2017_platform2_en.pdf• http://eeas.europa.eu/eastern/platforms/docs/work_programme_2014_2017_platform1_en.pdf• http://eeas.europa.eu/eastern/docs/index_en.htm• http://eeas.europa.eu/eastern/platforms/docs/work_programme_2014_2017_platform3_en.pdf• http://eeas.europa.eu/eastern/platforms/index_en.htm• http://eeas.europa.eu/eastern/platforms/docs/work_programme_2014_2017_platform4_en.pdf
Management
Financing & Grants
HUDSON FINANCIAL INCENTIVES
