Pan European Networks - Horizon 2020 - page 16

around €240bn being made available for long
term, strategic investment in capital projects,
whilst €5bn will lead to an estimated €75bn of
funding for SMEs and mid-cap firms. As a
result, over €315bn of investment will be
mobilised from 2015-2017 and poured into the
EU’s economy. Additionally, further funding will
be made available through the participation of
national banks and EU member states.
Presidential approval
The president of the EIB, Werner Hoyer, has
welcomed the creation of the EFSI. In January,
Hoyer commented on the legislative proposal
put forward by the Commission, remarking that
the additional investment will contribute to
“strengthening confidence and improving the
competitiveness of Europe’s economy”.
He continued: “We welcome that the EFSI will
be set up within the EIB Group. Our knowhow
and experience, in partnership with the
Commission, will help provide fresh stimulus for
the real economy in Europe. We have a strong
track record of putting money to work.
C
entral to the Investment Plan for Europe is the €21bn
European Fund for Strategic Investments (EFSI). A
partnership between the European Investment Bank (EIB)
and the European Commission, the EFSI will benefit from the
established expertise of the EU bank, as well as a new risk profile
and strategy delivering capital to major and important investment
projects throughout Europe, bringing benefits to both business
and society.
According to the Commission, the EFSI will be built on a guarantee of
€16bn from the EU budget combined with a €5bn commitment by the
EIB; other public and private contributions may also be added. The EU
guarantee will include a provisioning buffer of €8bn – progressively
increased to the €16bn total – drawn from existing EU funding
programmes, namely the Connecting Europe Facility (€3.3bn), Horizon
2020 (€2.7bn) and the margin of flexibility that exists within the EU
budget (€2bn).
Due to the nature of the EFSI, the impact of EU funds on the real economy
will be multiplied, leading to a much greater impact and investment in
infrastructure, research and innovation. Based on estimates from
historical experience, the multiplier effect of the EFSI will be 1:15 – for
every euro of public money contributing to the fund, €15 of total
investment is mobilised. Consequently, €16bn of investment will lead to
Strategic investment
Speaking to the European Investment Bank’s
Richard Willis, Portal
takes a
detailed look at how the EU bank will be impacted by the Juncker Investment
Plan and the accompanying EFSI
I S S U E S I X
H O R I Z O N 2 0 2 0 P R O J E C T S : P O R TA L
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S P E C I A L F E AT U R E : A N I N V E S T M E N T P L A N F O R E U R O P E ?
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