The EU plans to reverse the downward trend of investment and put Europe back on the path of recovery.
Europe’s growth catalyzed through growing investment is also a top priority for the Juncker Commission.
Firstly, the investment plan aims to boost investment through private investors who have been more risk averse in the recovery of the post-crisis era.
Secondly, the plan is dedicated to companies and projects with a riskier profile but with potentially significant added value.
Remove obstacles to investments by deepening the single market.
Provide visibility and technical assistance to investment projects.
Make smarter use of existing financial resources and facilitate private investment in value adding projects.
To accomplish its objectives, the European Commission and the European Investment Bank (EIB) have established the European Fund for Strategic Investments (EFSI) within the EIB.
EFSI’s mission is to break the under-confidence and make use of liquidity held by private investors.
INVESTMENT PLAN FOR EUROPE OUTLINE
European Fund for Strategic Investments
Is essentially an EUR 21 billion risk management tool designed to aid and facilitate investment from already existing capital pools in riskier project.
Was put together by the European Commission and the European Investment Bank.
Aims to mobilize at least EUR 315 bn in investment.
Support through the EIAH and the EIPP
The Investment Plan for Europe aims to help project promoters in the development of the financing application through the European Investment Advisory Hub.
Furthermore, as a means to connect projects with investors, the IPE has also built an European Investment Project Portal.
Regulatory environment improvement
One of the current priorities of the Commission seems to be the identification and elimination of regulatory bottlenecks that slow down investments.
Strategic infrastructure, including digital, transport and energy Expansion of renewable energy and resource efficiency
Environmental, urban development and social projects Education and training, research, development and innovation
Support for smaller businesses and midcap companies
Companies of all sizes, including small and medium enterprises (up to 250 employees) and midcaps (up to 3000 employees)
Public sector entities
National promotional banks or other banks delivering intermediated lending
Bespoke investment platforms
Commercially sound, economically and technically viable
Contributing to EU objectives and to sustainable growth and employment
Mature enough to be bankable
Priced in a manner commensurate with the risk taken
As financing operations will be on the EIB’s balance sheet, all applicants are subject to standard EIB due diligence and approval by its governing bodies.
Project promoters should follow standard EIB loan application procedures
SMEs and midcaps interested in EFSI transactions should refer to information on EIF financial intermediaries
SMEs, however, do have a wider range of possibillities to access EFSI funds; either through a financial intermediary (as stated below) or through a risk capital fund