An Investment Plan For Europe - EU Investment Plan 

(#InvestEU Plan)

 

A Trust Fund, a Project Portal and an Advisory Hub

Summary from Background (further down this page)

  

1. A TRUST FUND: European Fund for Strategic Investments (EFSI)
2. A PROJECT PORTAL: European Investment Project Portal (EIPP)
3. AN ADVISORY HUB: European Investment Advisory Hub (EIAH) similar to Fi-Compass (a Financial Instrument "Compass")
 
http://ec.europa.eu/priorities/jobs-growth-investment/plan/ Copied information below from "Actions"
 

The European Fund for Strategic Investments (EFSI)

The EFSI aims to overcome current market failures by addressing market gaps and mobilising private investment. It will support strategic investments in key areas such as infrastructure, education, research and innovation, as well as risk finance for small 

 

European Investment Project Portal

A transparent portal of viable projects to ensure that investors have reliable information on which to base their decisions. Investors should be able to have the confidence they need to move forward with projects, and avoid any stumbling blocks or uncertainty.

 

European Investment Advisory Hub (EIAH)

The EIAH will be Europe's gateway to investment support. It will share good practices, lessons learnt and real-life case studies on project finance and project management. The EIAH is a joint Commission and EIB initiative.

 

 

 

Background

 
President Juncker presented the Investment Plan to the European Parliament on 26 November 2014.
It was endorsed by the European Council on 18 December 2014.
 
Strasbourg, 26 November 2014
The European Commission today announced a € 315 billion Investment Plan to get Europe growing again and get more people back to work.
The Plan is built on three main strands (see Factsheet 1)
 
A. the creation of a new European Fund for Strategic Investments (EFSI), guaranteed with public money, to mobilise at least € 315 billion of additional investment over the next three years (2015 - 2017);
B. the establishment of a credible projectpipeline coupled with an assistance programme to channel investments where they are most needed;
C. an ambitious roadmap to make Europe more attractive for investment and remove regulatory bottlenecks.
 
(end of quote)
 
RELATED INVESTMENT FRAMEWORK: TOWARDS THE CAPITAL MARKET UNION ("removing barriers and increasing access to finance")
 
THE EU INVESTMENT PLAN WILL SUPPORT:
a. Long-term infrastructure investment projects (energy, broadband, transports etc)
b. Small and medium-sized companies (SMEs) (e.g. higher amounts of direct equity, guarantees for high-quality securitisation of loans)
 
 

http://www.dw.de/eib-to-ensure-funding-for-eu-investment-drive/a-18095699

Deutsche Welle | Date 27.11.2014  | Author: Jasper Sky

"Lack of investment [in Europe] is not due to a lack of capital. Europe has ample liquidity, which is available both in financial institutions and in corporations, but this money is not reaching the real economy," EIB chief Werner Hoyer has written.

 

The problem is that investors are risk-averse, reluctant to invest risk capital in a European economy characterized by high unemployment, underused production capacities, and near-zero growth.
 
EFSI is meant to overcome that problem by taking some risk away from investors - by having public funds absorb the first 21 billion euros of any losses that occur within the EFSI project portfolio. Only if total portfolio losses exceed that amount will private investors bear losses."
 
 

 

From the document > The investment planat the linkhttp://ec.europa.eu/priorities/jobs-growth-investment/plan/

 

THE EFSI Trust-Fund, a Project Pipeline, an Advisory Hub
 

STEP 1: “Investment Task Force” by the European Commission and EIB identified eligible projects

Task Force created on 23-24 October 2014.
Publication of identified projects on 09 December 2014 “EU Task Force identifies 2,000 potential projects worth €1.3 trillion”
(The full list had been published on the investment plan website)
 
(p.12) “Together with the Member States, the "Investment Task Force" carried out a first screening exercise of potentially viable projects with European significance. The Commission considers that this work should continue on a more permanent basis at EU level, to help identify and unlock key investment projects of European significance, as well as to inform investors on a regular basis of the state of preparedness of the various projects. NPBs could usefully contribute to this work.”
 
Typical projects (cf. disclaimer) that, depending on the project features in each individual case, could potentially benefit from financing could include projects identified by the joint Commission-EIB Task Force such as for example:
 
1.     A programme for the construction and rehabilitation of public buildings aimed at improving their energy efficiency, currently held up by lack of funding.
2.     Transport links between EU countries facing delays due to high upfront project costs.
3.     Open-access, laser-based research infrastructure in countries currently in need of financing to avoid delays in implementation.
4.     A programme to upgrade school facilities in countries facing implementation challenges and lack of funding.
5.     Investment in water infrastructure, including wastewater treatment plants and water supply facilities, hampered by a lack of financing.
6.     Other projects supporting, for example, the expansion and upgrading of freight and passenger capacities in ports and airports; dedicated rail-connections between important airports and urban centres; greening projects in the area of maritime transport; alternative fuel-infrastructure along major roads; 3rd generation bio refineries; etc.
 
 

STEP 2: Projects to be fed into the “European investment project pipeline”

Legislative act published 2015-01-13
(p.12) “In this context, a pipeline of investable projects of European significance could be established.[1] The list of projects would be dynamic and based on a number of simple and recognised economic criteria. Projects would be continuously added and removed over time. This does not mean that every project in the European pipeline should or will be financed under the Plan or through the new Fund, but it will allow public and private investors to access relevant and transparent information. The list of assessed and non-assessed projects should be made publicly available on a website, which in turn could be connected to similar lists at national and regional level.
 
Over time, this work could lead to a system of European certification for viable investment projects that fulfill certain criteria. Such certification could subsequently be used by the EIB and NPBs to attract private investors. This would be useful in order to provide a clear "credibility label" for European investment projects.
 
This is also in line with the efforts at global level in the context of the G20 to share best practices for investment projects.”
 
 
 
 
 

STEP 3: A Trust-Fund is established, the European Fund for Strategic Investments (ESFI)

Legislative act published 2015-01-13, Fund to become operational by the end of 09/2015

 

 

a.     The Financial Mechanism

“To establish the European Fund for Strategic Investments, a guarantee, of EUR 16 bn, will be created under the EU budget to support the Fund. The EIB will commit EUR 5 bn. The Fund will thus start with significant firepower but it will also be able to expand its activities further over time. Member States, directly or through their NPBs or similar bodies, will have the opportunity to contribute to the Fund in the form of capital. Importantly, in the context of the assessment of public finances under the Stability and Growth Pact, the Commission will take a favourable position towards such capital contributions to the Fund. Private investors can also join at the level of the Fund.
 
The EU guarantee will be backed by existing EU funds from the margin of flexibility which exists within the EU budget, the Connecting Europe Facility and the Horizon 2020 programme.
 
 
 
Graph 3. The multiplier effect of the Fund (averaged based on experience)
 
We estimate that the Fund could reach an overall multiplier effect of 1:15 in real investment in the economy. This is because the Fund will offer an initial risk bearing capacity that will allow it to provide extra financing and attract more investors to join, as indicated in Graph 3. This means that one euro of risk protection by the Fund can generate, on average, 15 euro of investment in the real economy that would not have happened otherwise. This 1:15 multiplier effect is a prudent average, based on historical experience from EU programmes and the EIB. The final multiplier effect will naturally depend on the mix of activities and the specific features of each project.
 
As a reference, the capital increase of the EIB in 2012 had an estimated multiplier effect of 1:18 and is materialising as foreseen. Likewise, under the current Loan Guarantee Facility for SMEs under the COSME programme, every EUR 1 bn of funding results in at least EUR 20 bn capital for SMEs, the equivalent of a multiplier effect of 1:20.
 
Overall, if the Fund is set up rapidly with an initial contribution of EUR 21 bn at EU level, 
it has the potential to yield approximately EUR 315 bn of additional finance over three years. The impact will obviously be higher as Member States and National Promotional Banks join.”
 
 

b. Role 1 of 2 |  The new Fund will support long-term investment projects

“The European Fund for Strategic Investments will support strategic investments of European significance in infrastructure, notably broadband and energy networks, as well as transport infrastructure, particularly in industrial centres; education, research and innovation; and renewable energy and energy efficiency.
 
The activities of the Fund in these fields will be complementary to the more traditional scope of EIB activities and to ongoing EU programmes such as the Connecting Europe Facility (for infrastructure investment) and Horizon 2020 (for innovation and R&D).”
 
 

c. Role 2 of 2 | The new Fund will also support investment by SMEs and mid-cap companies

“In addition, the European Fund for Strategic Investments will support risk finance for SMEs and mid-cap companies across Europe, relying on the European Investment Fund (EIF, part of the EIB-Group) for the operational implementation. This should help them overcome capital shortages by providing higher amounts of direct equity, as well as additional guarantees for high-quality securitisation of SME loans. This is an effective way to kick-start job creation and growth, including the recruitment of young people.”
 
 
 

STEP 3: An investment advisory "Hub" to be established

“This notably includes technical assistance for project structuring, the use of innovative financial instruments at national and European level, and the use of public private partnerships.”
 
“This will take the form of an investment advisory "Hub" with three audiences in mind: project promoters, investors and public managing authorities.”
 
 “This new Hub will build on successful, already available instruments such as the JASPERS programme, which will be upgraded and expanded, and the new advisory platform for the use of innovative financial instruments (Fi-Compass).”
 
Here is the Fi-Compass:
 
“"Investing in Europe" workshops will also be organised at national, transnational and regional level to address specific challenges jointly with the EIB. The focus will be on attracting private and public project promoters, as well as private investors, raising awareness about EU financial instruments, the additional risk-bearing capacity of the European Fund for Strategic Investments, and on maximising synergies between national and EU schemes.
 
 
 

Comments from the Media

 

1.     Interview of the Commissioner Pierre Moscovici before the announcement of the plan

 
English translation (French original follows)
"The EU in the previous mandate has stabilized". "Now it is time to add some dynamism."
Interview of Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs with Caroline de Camaret for channel France24 (link in French)
 
"The EU in the previous mandate has stabilized the situation. Now it is time to add a dynamic."
 
"The investment plan that is going to be presented in a few weeks, 300 billion euros for three years is an element of the response, not the whole response. It is necessary that States and local collectivities do their part. It is necessary that all levels of public action focus on the same direction. It is a response to this deficit of investment. I will be presenting very soon to the French Prime Minister a parliamentary report that I had written some weeks ago entitled « For a Europe of investment ». For me it is an absolute conviction. And these 300 billion Euros will allow for what ? To finance projects targeted to the jobs of the future, digital technology, energy, transports and also research, education, innovation, what we call human capital. This will allow Europe to increase its growth potential and therefore to create jobs ; it will also allow us to cross the technological barrier."
 
"We have to devote all our forces on the base of financial stability which must not be jeopardised, on common rules that have to be applied; and now we have to add a dynamic, to add dynamism in order to relaunch the European Economy. This is what we are going to do by this investment plan."
 
 
 Entretien de Pierre Moscovici, commissaire aux Affaires économiques et financières, à la fiscalité et aux douanes par Caroline de Camaret pour France24 (lien)
 
10:24 La Commission Européenne précédente, l'Union Européenne dans le mandat précédent, ils ont stabilisé la situation. Maintenant il faut ajouter de ladynamique.
 
11:16 Le plan de l'investissement qui sera présenté dans quelques semaines, de 300 milliards d'euros sur trois ans, c'est un élément de la réponse, pas toute la réponse. Il faudra aussi que les États, que les collectivités locales fassent leur part. Il faut que tous les niveaux d'action publique agissent dans le même sens. C'est une réponse à ce déficit d'investissement. Je remettrai très prochainement au Premier Ministre français un rapport parlementaire que j'ai fait il y a quelques semaines qui s'intitule “Pour une Europe de l'investissement”. Pour moi, c'est une conviction absolue. Et ces 300 milliards d'Euros, ils permettront quoi? De financer des projets, des projets ciblés aux emplois de l'avenir, la numérique, l’énergie, les transports, aussi la recherche, l'éducation, l'innovation, ce qu'on appelle le capital humain. Cela permettra à l'Europe d'augmenter son niveau de croissance potentiel, donc de créer des emplois; et puis ça permettra aussi qu'on franchisse la barrière technologique.
 
12:34 Il faudra que nous consacrions toute notre force sur la base de la stabilité financière qui ne doit pas être remise en cause, sur la base des règles communes qui doivent être appliquées et maintenant ajouter de la dynamique, du dynamisme à relancer l’Économie européenne. Et c'est ce que nous allons notamment faire à travers ce plan de l'investissement.
 
 
 
 
 
English translation (French original follows)
Jean-Claude Juncker had said "I think that we can use better the EU budget and the European Bank of Investment (EBI). This relaunch plan (300 billion euros) does not represent “new funds”; it aims in reusing existing funds and in motivating the private sector to invest.  “It is quite reasonable mentions Natacha Valla. European States are in delicate budgetary situations and cannot spend enormous amounts. And since the EBI (the EU bank) is ranked AAA, it is very attractive and reassuring for potential co-investors."
 
Jean-Claude Junker avait dit "Je crois que nous pouvons faire une meilleure utilisation du budget de l'Union européenne et de la Banque européenne d'Investissement (BEI)" a-t-il aussi ajouté. Ce plan de relance ne prévoit donc pas d’injecter 300 milliards d’euros d’investissements nouveaux dans l’économie. Il vise au contraire à redéployer des fonds existants et à inciter le secteur privé à investir. "C’est assez logique, souligne Natacha Valla. Les États européens sont dans des situations budgétaires délicates et ils ne peuvent donc pas dépenser énormément. Et puis la BEI est notée AAA, elle est donc très attractive et sécurisante pour des co-investisseurs potentiels".
 
 
 

3.     iTELE O.Galzi TV show – LCI “L’Invité de l’Economie”

 
English version
On a TV show on french channel iTELE hosted by O.Galzi, concerning the announcement of the EU investment plan, a participant mentioned: “The problem is that we are not politically integrated”. Another participant added: “Yes, of course, we are not federal states”.
At the end of the TV show another participant mentioned that the relaunch of the EU economy could be accomplished by a federalization of the hard nucleus of the EU.
 
To this direction and until a potential elaboration of the legislative framework on the subject, bilateral agreements could have an important role. On the TV show « l’invité de l’économie » de E.Kessler on French channel LCI, a EU deputy with both french and german personal links wanted to promote the french-german interaction on the subject. He mentioned that there are a lot of things that stop at the border. In addition, he proposed that other interactions of this kind could be implemented by actors that have similar links between different countries.
 
French version
A une émission de O.Galzi sur iTELE concernant l’annonce du plan de l’investissement de l’UE, un intervenant a mentionné : « Le problème est que nous sommes pas politiquement intégrés ». Un autre intervenant a ajouté: « Oui, bien sûr, nous ne sommes pas des états fédéraux. »
A la clôture de l’émission un autre intervenant a remarqué que la relance de l’économie de l’UE s’effectuerait par une fédérisation du noyau dur de l’UE.
 
A cette direction, et jusqu’à une éventuelle élaboration du réglementation sur le sujet, les accords bilatérales auraient un rôle important. A l’émission «l’invité de l’économie» de E.Kessler sur LCI, un député de l’EU avec des liens personnels français et allemands a voulu promouvoir l’interaction franco-allemand sur ce sujet. Il a mentionné qu’il y a beaucoup des choses qui s’arrêtent à la frontière. En plus, il a suggéré que d’autres interactions de ce genre pourraient être mises en place par des acteurs qui auraient des liens similaires entre des pays différents.
 
 
 

Investment Browser

Next to:
Crowdfunding - Participative Funding Web Sites,
Social and Solidary Economy Web Sites (e.g. co-operatives),
Regional and National Investment Sites,
 
A EU Investment Certification Site/Portal
(investment projects that fulfil certain criteria are certified to be added on the site)
 
Linkage to G20 and International Initiative Web Sites
 
 
 

EU Investment Plan – Long Term Investement Projects

2015-04-22

Fantastic news for investment in Europe: @EIBtheEUbank will finance first 4 #EFSI projects through #investEU europa.eu/rapid/press-re…

 
 
"These projects are in different sectors (R&D, health care, industrial innovation, transport) and in different countries (Spain, Italy, Ireland and Croatia). They serve as examples of investments that the new European Fund for Strategic Investments (EFSI) may support in the near future."
 
 

 

EU Investment Plan – Small And Medium-Sized Companies (SMEs) 

http://europa.eu/rapid/press-release_IP-15-4441_en.htm    European Commission - Press release | Brussels, 17 February 2015

Investment Plan: Green light for SME financing before the summer

“Following a decision by the Board of Governors of the European Investment Bank (EIB) today, small and medium-sized companies (SMEs) across Europe should be able to benefit from the first funds from the new European Fund for Strategic Investments (EFSI) before the summer.”

 

 

http://www.eib.org/infocentre/press/releases/all/2015/2015-101-le-fei-et-bpifrance-signent-un-accord-pour-soutenir-les-pme-et-eti-francaises-innovantes.htm

12 May 2015

First financial transaction in Europe under the Investment Plan for Europe: EIF and Bpifrance* sign agreement to support innovative French SMEs and midcaps.
(*Banque Publique d’Investissement de France – Public Investment Bank of France) 

(Note that EU Member States contribute through their National Promotional Banks etc)

"This is the first financial transaction in Europe to benefit from an EU guarantee under EFSI." (First EFSI transaction)

 

 

 

European Commission ‏@EU_Commission
2015-05-12  retweeted Commission en France
MT @Moedas: Pour une UE au service de la croissance & de l'investissement des PME innovantes http://tinyurl.com/nau692uhttps://twitter.com/UEfrance/status/598032390506811392 …
Quote
Commission en France@UEfrance 2015-05-12
.@Moedas & @EmmanuelMacron saluent la 1ère signature au titre du plan d'investissement pour l'Europe #investEU

 

 

EU Member State Contributions to the Trust Fund "EFSI" (European Fund For Strategic Investments)

 

 

The Roadshow

 

 European Commission retweeted 2015-07-16

Jyrki Katainen ‏@jyrkikatainen  Jul 16London, England

I am delighted to hear the #UK announcement of £6bn – nearly €8.5bn - of co-financing for the #EFSI #investEU

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http://ec.europa.eu/priorities/jobs-growth-investment/plan/   Select "Background" and scroll to the bottom of the page to reach "Country contributions" (Copied list below)
 

 

 
 Jyrki Katainen @jyrkikatainen
Happy to hear #France + #Germany will submit projects jointly for #EFSI financing #investEU @EmmanuelMacron @BMF_Bund http://bit.ly/1Nzq5fb
4:52 PM - 31 Mar 2015
 Le Monde @lemondefr
Paris et Berlin proposent un programme commun d’investissement
Le Monde.fr version mobile - Les deux pays estiment qu’il faut s’attaquer au retard d’investissement en Europe qui explique, selon eux, la faible croissance. Ils ont présenté plusieurs projets,...
 

 

 

 

Signing of EFSI agreement - All decisions for making the EFSI operational have been finalized (2015-07-22)

 

European Commission retweeted Jul 22

Today we'll sign number of legal #EFSI documents so that the #investEU can be up and running as fast as possible. http://europa.eu/!GM69gn 

 

NOW LIVE | Investment plan - #investEU | signing of the #EFSI agreement http://europa.eu/!CJ73CR 

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European Commission retweeted 2015-07-20
0:30

EIBtheEUbank @EIBtheEUbank

#InvestEU is putting our money back to work – for the benefit of all Europeans.Full video at: https://youtu.be/LH1TWD0eDz8 

 
 
 
 

#InvestEU: European Fund for Strategic Investments #EFSI ready for take-off in autumn http://europa.eu/!rG77cU  pic.twitter.com/ahm8mNd70Z

 

"The Commission has just published a Communication on the role of National Promotional Banks (NPBs) in supporting the Investment Plan for Europe.""

 

"Commissioner Pierre Moscovici, responsible for Economic and Financial Affairs, Taxation and Customs, said: ''The synergy between European and national tools will be essential to start rapidly closing the investment gap that our economies face. In order to make this happen, we’re convinced that a well-structured network of national promotional banks can play a key role and complement the European Investment Bank.''

 

Excerpt from cited pdf:

Introduction: Key role of NPBs in the implementation of the Investment Plan for Europe

 
"NPBs play an important role in catalysing long-term finance. In recent years, they have stepped up their activities, aiming to counterbalance the necessary deleveraging process in the commercial banking sector."
 
"During the consultation on the Green Paper on long-term financing of the European economy(2), calls were made for better exploiting the synergies between the EU budget, the European Investment Bank (EIB) Group and NPBs in policy areas such as climate change, environment, innovation and social and human capital development".
 
Excerpt from press release:

Confirmation of the projects pre-financed or ”warehoused” by the EIB which will receive the backing of the EFSI guarantee.

 

The warehoused projects to receive the EU guarantee are:

Copenhagen Infrastructure II / Abengoa research, development and innovation II / Energy efficiency in residential buildings / Grifols Bioscience R&D / Äänekoski bio-product mill / Redexis Gas Transmission and Distribution /Arvedi Modernisation Programme / Primary healthcare centres PPP

 

 

Questions and Answers about the Investment Plan for Europe #investEU #EFSI http://europa.eu/!vk98xQ 

 

 

 
 

.@EIBtheEUbank Group signs its first #equity participation under #investEU in #Francehttp://bit.ly/1eiDtJC  #EFSI pic.twitter.com/W8bO1Fo3Xh

 

 
 

Signature entre la BEI et un Fonds d'investissement dédié aux énergies renouvelables pour 50M € #planjuncker pic.twitter.com/9wQETkUPrj

 

 

 
 
 EIBtheEUbank retweeted

Nous avons l'honneur de vous annoncer la prise de participation de @EIBtheEUbank dans Capenergie 3 #planjuncker

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#InvestEU - over €1 billion of equity investments for #SMEs and #startups since January http://europa.eu/!up34Nv 

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