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Baltic Journal of European Studies

Tallinn Law School, Department of Law, School of Business and Governance, Tallinn University of Technology

2 Issues per year

CiteScore 2016: 0.21

SCImago Journal Rank (SJR) 2016: 0.140

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Innovative Financial Instruments in EU Funding Schemes

Eva Branten
  • Corresponding author
  • Department of Public Economics, Tallinn University of Technology Akadeemia tee 3, Tallinn 12618, Estonia
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ Alari Purju
  • Corresponding author
  • Department of Public Economics, Tallinn University of Technology Akadeemia tee 3, Tallinn 12618, Estonia
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
Published Online: 2013-06-18 | DOI: https://doi.org/10.2478/bjes-2013-0007


Innovative financial instruments, in the context of the funding schemes of the European Union, are different from funding by way of direct subsidies. These financial instruments can be divided in two large groups: instruments offering risk capital and equity capital and debt instruments. The instruments help to engage resources from the private sector in projects which might be considered too risky without the said instruments and the implementation of which would be impossible or related to significantly higher expenses for the promoter of the project. As seen from Estonia’s perspective, up until now the use and impact of innovative financial instruments have generally met the expectations. In view of the diversity of areas and target groups of the innovative financial instruments planned within the framework of European Union’s Financial Framework 2014-2020, it may be presumed that several new instruments will be successfully implemented in Estonia.

Keywords : debt instruments; European Union’s funding schemes; innovative financial instruments; multiplier effect; social cost-benefit analysis

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About the article

Eva Branten

Eva Branten graduated from the School of Economics and Business Administration at the Tallinn University of Technology in 2012. She is a project research associate at Interreg project SmartComp at the Department of Public Economics of the Tallinn University of Technology.

Alari Purju

Alari Purju, PhD (1988) is Professor and head of the Chair of Public Economics at the Tallinn University of Technology. His fields of interest are economic development problems, EU economics, and institutional economics. He has been advisor to the Minister of Economic Affairs and Communications in Estonia, has been working as a consultant to the OECD, the World Bank and to the Council of Higher Education of Latvia. He is a visiting professor at the Lappeenranta University of Technology. Alari Purju has managed or participated in four EU FP5 and FP6 projects, in OECD and the World Bank projects. His latest publication in BJES is “Euro Crisis, Old and New Trilemmas and Estonia’s position” (BJES, vol. 2, no. 1[11]).

Published Online: 2013-06-18

Published in Print: 2013-06-01

Citation Information: Baltic Journal of European Studies, Volume 3, Issue 1, Pages 121–135, ISSN (Print) 2228-0596, DOI: https://doi.org/10.2478/bjes-2013-0007.

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