More future-oriented investments in neediest EU economies

Met dank overgenomen van Europees Parlement (EP) i, gepubliceerd op donderdag 15 juni 2017.

EU investment plan - European Fund for Strategic Investments (EFSI) should:

  • work better for weaker EU regions
  • focus more on riskier future-oriented investments
  • focus on investments that would not otherwise be supported

In their assessment of how EFSI has been applied, MEPs want more geographical balance, support for smaller companies and riskier innovative investments.

MEPs are concerned that the EU-15, where the investment gap was already below the EU average, received 91% of EFSI funding. They also pointed to an uneven sectorial distribution, with energy-related projects accounting for 46% of total EFSI financing, while social infrastructure, health and education were under-represented with only 4% of funds. They therefore call for ceilings at 30% for each specific sector.

The purpose of EFSI is to ensure additionality, which means helping to address market failures and supporting operations that could not have been carried out without the EFSI support. MEPs want the concept of additionality to be clearly defined, to make sure that the projects supported are innovative and ground-breaking, hence riskier than those usually supported by the European Investment Bank (EIB).

Small-scale and cross-border projects also lack sufficient support from EFSI. MEPs believe that the EIB and the European Investment Advisory Hub (EIAH) should promote investment platforms, grouping together smaller projects and providing technical assistance in order to achieve the geographical and sectorial diversification of investments.The non-legislative resolution was approved by 477 votes in favour, with 105 votes against and 35 abstentions.

Next steps

After this final vote on the own-initiative report on EFSI implementation, MEPs will now fully focus on the ongoing three-way negotiations with the member states and the Commission on the EFSI extension.

Quick Facts

The EFSI, implemented by the European Investment Bank, was established for an initial period of 3 years, with the aim of mobilising at least €315 billion euros of investments in the real economy. The European Commission proposed extending the fund’s duration until the end of current Multiannual Financial Framework (MFF) in December 2020, with a view to reaching an investment target of € 500 billion.

Who's involved

Implementation of the European Fund for Strategic Investments

Contact:

Productinformatie

REF.: 20170609IPR77016

Gecreëerd: 15-06-2017 - 12:45


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