The EU Investment Plan and ESI funds
STRUCTURED DIALOGUE WITH ESIF PARTNERS GROUP OF EXPERTS
BRUSSELS, 23 APRIL 2015
Strong boost to strategic investments Better access to investment finance
for SMEs and mid-cap companies Strategic use of EU budget Better use of the European Structural and
Investment Funds
MOBILISING FINANCE FOR INVESTMENT
Project pipeline preparation and selection Technical assistance at all levels Strong cooperation between National
Promotional Banks and the EIB Follow-up at global, EU, national and
regional level, including outreach activities
MAKING FINANCE REACH THE REAL ECONOMY
Predictability and quality of regulation Quality of national expenditure, tax systems
and public administration New sources of long-term financing
for the economy Removing non-financial, regulatory barriers
in key sectors within our Single Market
IMPROVED INVESTMENT ENVIRONMENT
THE EU INVESTMENT TRIANGLETHE EU INVESTMENT TRIANGLE
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EU guarantee
EUR 16 bn*
EU guarantee
EUR 16 bn*
EUR 16 bn
x 15
Long-term investments circa EUR 240 bn
SMEs and mid-cap firmscirca EUR 75 bn
EUR 5 bn
European Fund for Strategic InvestmentsEUR 21 bn
Total extra over 2015-17:circa EUR 315 bn**
EUR 5 bn
Possible other public and
private contributions
* 50% guarantee = EUR 8 bn from Connecting Europe Facility (3.3), Horizon 2020 (2.7) and budget margin (2)** Net of the initial EU contributions used as guarantee: EUR 307 bn
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Mobilising finance for investment – leverage Mobilising finance for investment – leverage
EUR 75 b
n
EUR 240 bn
EUR 2
0 bn (a
t lea
st)
EUR 315 bn
Strategic investments of European significance in energy, transport,
broadband, education, research and innovation
Priorities at national and regional level (e.g. SMEs,
research, transport, environment)
SMEs and mid-cap companies
Impact of Member States' contributions to the Fund
Positive impact on investment throughout
the economy
Positive impact on investment throughout
the economy
Will
depend o
n com
mitm
ent
Over three years
Improved investment environment at EU and national level
European Fund for Strategic Investments:
EUR 21 bn (initially)
Better use of the European Structural
and Investment Funds
Possible Member States' contributions to the Fund
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'overall doubling'> EUR 20bn
Investment Plan for Europe
1. Mobilise finance for investment
2. Make finance reach the real economy
3. Improve investment environment
European Fund for Strategic Investment (EFSI)
Better use of ESI Fundsi.a. extensive use of Financial
Instruments
≥ EUR 20bn additional investment for 2015-2017 SMEs Research Transport Environment
2. Make finance reach the real economy
3. Improve investment environment
Technical Assistance
Ex-ante Conditionalities
JASPERSFI-Compass
≥ EUR 315bnLong-term investmentsSMEs and mod-cap firms
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Through loans, guarantees, equity, venture capital, etc.
2014-2020What's New?
Regulation: FI extended to ALL thematic objectives and all ESIF funds
Additional support: FI Compass –advisory service, 'off-the shelf' instruments,guidance documentation
Leverage EffectLeverage EffectFinancial Instruments (FI)Resource-efficient way of using EU budget funds to enable investment in the economy
TARGETS At least an overall doubling of the use of FI
(EUR 12bn to ± 30bn)
Initial EU Investment
Total InvestmentTarget Total Investment
Doubling of financial instruments
• Financial instruments are particularly effective to increase the impact of ESIF
• An overall doubling of the use of financial instruments in 2014-2020 relative to 2007-2013 (increase from EUR 12 billion to close to EUR 30 billion) is an ambitious but realistic target
• This extra EUR 18 billion could leverage additional investments between EUR 40-70bn (of which at least EUR 20bn in first three years)
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How is this target achievable?
% to deliver through financial instruments:
•5% Research, Development and Innovation
•10% ICT
•50% SME support
•20% low carbon economy
•5% environment and resource efficiency
•10% sustainable transport
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Why is this target achievable?
• Legal framework for 2014-2020 is open to all thematic objectives and widens implementation options
• SME Initiative is up and running: ES signature on 26th January
• "Off-the-shelf instruments": ready-to-use and state aid cleared templates for financial instruments
• Fi-compass: knowledge hub for guidance and advice on financial instruments http://www.fi-compass.eu/
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