Which financial instruments are used in shared management with Member States?

The correct choice identifies the structural and investment funds as the financial instruments used in shared management with Member States. These funds are significant in the context of the European Union's funding mechanisms, specifically designed to promote economic development and regional cohesion among its member states.

Structural and investment funds, such as the European Regional Development Fund (ERDF) and the European Social Fund (ESF), are allocated to various projects aimed at improving infrastructure, addressing social issues, and enhancing competitiveness. The shared management approach involves both the European Commission and Member States actively collaborating in the implementation and monitoring of these funds, ensuring that resources are allocated effectively in line with agreed strategies and priorities.

This collaboration allows for a tailored approach where funds can be adjusted to local needs and conditions, thus maximizing their impact. By involving member states in the management process, it ensures accountability and proper utilization of the funds allocated.

Other financial instruments mentioned, while relevant in broader financial contexts, do not exemplify the specific shared management structure that characterizes the relationship between the EU and its Member States regarding funding programs.