Revolving instead of subsidizing. Revolving funds as financial instrument of the government
PhD student: Mrs V.A. van Waarde
Promotor: Mrs Prof J.E. van den Brink
Duration: 1/9/2019 - 31/8/2023
Public money should no longer move in one direction, but circulate. Governmental bodies therefore increasingly provide public funding through revolving funds. These funds are established by public-law entities and provide public money to final beneficiaries by means of a loan, participation and guarantee. The money spend will be reversed to the funds assets due to reimbursement and fees paid by the beneficiaries. Although revolving funds distribute public money, they are in practice usually not subject to the application of public law. Many revolving funds are thus not bound by the general principles of good administration nor obliged to allocate public money in a transparent manner. On the basis of archetypes revolving funds, it will be determined which standards are applicable to revolving funds. In addition, it will be tested whether these rules are complied with by revolving funds in practice. My research does not only focus on revolving funds financed by Dutch governmental bodies, but also identifies revolving funds financed by the European Union. Are the different standards justified or does this in practice cause legal problems? And how can these problems be solved?