Following a successful first year since the European Fund for Strategic Investments (EFSI) came into force, the European Commission is to extend the EFSI’s term further, it being at the heart of the Commission’s Investment Plan for Europe.
The EFSI is being managed by the EIB Group and is being used with the plan to mobilise a minimum of €315 billion in additional investments in the economy by mid-2018. The EFSI utilises a first loss guarantee, which enables the EIB to invest in an increased number of projects, some of which are of a higher risk than it would have invested in otherwise, and also to invest sooner than it would have done without the EFSI.
The EFSI is currently active in 26 member states and is calculated to generate €100 billion in investment with the approvals given to date.
In particular, small and medium-sized enterprises (SMEs) have benefited greatly from the EFSI so far, with 150,000 SMEs having access to new financing.
The EIB and the EC are planning on increasing their local outreach in order to encourage more EFSI activity in those member states which are lacking in EFSI activity in comparison to other member states.
The President of the European Commission, Jean-Claude Juncker said that “The Investment Plan is working and defying the pessimists. The European Fund for Strategic Investments is creating jobs and triggering investments in the real economy every day. That is why we propose to extend it beyond 2018. Let’s be ambitious in getting Europe investing again.”
This extension is a prime indication of the European Union’s tireless quest to deepen the single market, which is the EU’s unique selling point.
Additionally, the Commission announced the launch of the European Investment Project Portal (EIPP) which is another element of the Commission’s Investment Plan. This is an online platform intended on bridging the gap between European project promoters and investors from the EU and beyond.
According to the EC, the portal was long awaited by investors and will now increase the visibility of projects to invest in across Europe.
