Canary Islands European Funds Support for Local Economy

Overview

The Canary Islands government has officially published a financing agreement that allocates nearly €74.1 million in European funds to support new financial instruments aimed at strengthening the region's economy. This move follows European regulations and a detailed ex ante evaluation confirming the need to address funding gaps faced by local startups, innovative companies, and SMEs.

Management and Framework

The agreement appoints SODECAN, a public economic development entity, as the manager of this fund, which will operate within the framework of the EU's FEDER Canarias 2021-2027 program.

Financial Instruments

The plan includes various financial tools such as:

• loans with non-repayable tranches
• co-investment schemes
• a 'fund of funds' to encourage private investment in innovation, entrepreneurship, and sustainable growth

Impact for Residents

Increased access to tailored financing options should help local businesses innovate, create jobs, and become more competitive.

Transparency and Governance

The initiative is designed to ensure transparency, proper governance, and visibility, with specific measures to track results and ensure proper use of funds.

Strategic Significance

The agreement underscores the region's strategic approach to leveraging EU funds for:

• inclusive economic growth
• innovation
• resilience post-pandemic