An Investment Plan For Europe - EU Investment 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")
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
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.
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.
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)
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
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
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.
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
“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”
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.
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.
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
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.”
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 …
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)
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,...