On 6 December 2016, the European Council agreed its stance on a proposal to extend the lifespan of the European fund for strategic investments (EFSI), the EU’s flagship initiative under its ‘investment plan for Europe’.
The agreed compromise involves extending the EFSI in terms of both duration and financial capacity, mobilising at least half a trillion euros of investments by 2020. It also introduces a number of operational improvements to take account of lessons learned from the first year of implementation.
“Europe is facing many challenges today and the need to boost investment is one of them. We need to play our part”, said Peter Kažimír, Slovak minister for finance and president of the Council.
Talks will start with the European Parliament once the Parliament has agreed its negotiating stance.
Investment conditions have improved in the EU since the investment plan was launched. Economic confidence is returning and the plan is already delivering results. Established in mid-2015, the EFSI is on track for attaining its EUR 315 billion target in additional investments by mid-2018.
Main changes
The Council agreed that efforts should be continued and private investment should be attracted to the maximum extent possible.
The compromise provides for:
• an extension to the lifespan of the EFSI until 2020;
• an increase in the investment target to EUR 500 billion;
• an increase in the EU budget guarantee to EUR 26 billion (of which EUR 16 billion will be available for guarantee calls until mid-2018);
• an increase in the European Investment Bank’s contribution to EUR 7.5 billion (from EUR 5 billion currently).
The compromise also includes technical enhancements in the light of lessons learned from the first year of implementation.
Map: EFSI dashboard, updated in November 2016
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