Page 15 - ePaper
P. 15
34. How will the European Structural and Investment Funds contribute to the
Investment Plan?
Member States and regional authorities should use EU funds at their disposal as effectively
as possible in support of investment, by focusing on key areas and maximising the
multiplying effect of every euro invested. This implies an increased use of financial
instruments in the form of loans, equity and guarantees, instead of traditional grants.
In the context of the Investment Plan, the ambition is to at least double the use of
innovative financial instruments in the European Structural and Investment Funds for the
period from 2014 to 2020. The increased use of innovative financial instruments, rather than
grants, should create additional financial leverage on every euro mobilised. By doubling the
amount of innovative instruments and using the leverage effect thus created, at least € 20
billion in terms of additional investments in the real economy could be mobilised between
2015 and 2017.
In addition, Member States and regions can also raise the multiplier effect of EU funds by
increasing national co-financing beyond the minimum legal requirement.
Finally, Member States are invited to use EU funds still available under the 2007 to 2013
programming period to their best effect and ensure that they are fully used in support of this
Investment Plan.
35. How does the new initiative compare to the Project Bond Initiative?
The new initiative will be more flexible and cover a broader range of sectors than the pilot
phase of the project bond initiative.
The pilot phase of the project bond initiative reflects sectors covered by the European
Commission’s Connecting Europe Facility and uses a single financial tool to provide credit
enhancing-capacity for capital market issues. The project bond initiative is on track to
achieve the objectives of the Pilot Phase
By comparison, the new initiative will be a very flexible instrument, covering many different
sectors as transport, energy, telecoms, but also environment, education, research, energy
efficiency, and using a wide range of financial instruments, including equity, guarantees,
subordinated debt and senior debt. The financial means to finance the initiative will also be
considerably larger than those attributed to project bonds.
14
Investment Plan?
Member States and regional authorities should use EU funds at their disposal as effectively
as possible in support of investment, by focusing on key areas and maximising the
multiplying effect of every euro invested. This implies an increased use of financial
instruments in the form of loans, equity and guarantees, instead of traditional grants.
In the context of the Investment Plan, the ambition is to at least double the use of
innovative financial instruments in the European Structural and Investment Funds for the
period from 2014 to 2020. The increased use of innovative financial instruments, rather than
grants, should create additional financial leverage on every euro mobilised. By doubling the
amount of innovative instruments and using the leverage effect thus created, at least € 20
billion in terms of additional investments in the real economy could be mobilised between
2015 and 2017.
In addition, Member States and regions can also raise the multiplier effect of EU funds by
increasing national co-financing beyond the minimum legal requirement.
Finally, Member States are invited to use EU funds still available under the 2007 to 2013
programming period to their best effect and ensure that they are fully used in support of this
Investment Plan.
35. How does the new initiative compare to the Project Bond Initiative?
The new initiative will be more flexible and cover a broader range of sectors than the pilot
phase of the project bond initiative.
The pilot phase of the project bond initiative reflects sectors covered by the European
Commission’s Connecting Europe Facility and uses a single financial tool to provide credit
enhancing-capacity for capital market issues. The project bond initiative is on track to
achieve the objectives of the Pilot Phase
By comparison, the new initiative will be a very flexible instrument, covering many different
sectors as transport, energy, telecoms, but also environment, education, research, energy
efficiency, and using a wide range of financial instruments, including equity, guarantees,
subordinated debt and senior debt. The financial means to finance the initiative will also be
considerably larger than those attributed to project bonds.
14
