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of the projects, including, for example, debt financing (subordinated or senior), guarantees,
equity, quasi-equity and venture capital. It is important to bear in mind that the aim is to
offer financing solutions that crowd-in private investors. The EFSI will not give grants and
subsidies.
29. Will mobilising € 8 billion from the EU budget require an amending
Budget 2015? Will that require the mobilisation of some flexibility
mechanisms foreseen in the MFF 2014 -2020 Regulation?
The proposal establishes an EU Guarantee Fund which will provide a liquidity cushion for
the Union budget against potential losses incurred by the EFSI when supporting projects. It
will gradually reach €8 billion by 2020 via payments from the EU budget. This requires an
amendment to the 2015 EU Budget, which will create the necessary new budget lines and
transfer €1.36 billion in commitment appropriations and €10 million in payment
appropriations to these new lines. The €10 million in payments will help cover the
administrative costs of the European Investment Advisory Hub. The overall impact for the
2015 EU Budget is neutral. No legislative changes to the current MFF are needed. The
provisioning of the Guarantee Fund will be constituted on the basis of existing budget
reserves and the reallocation of certain, limited amounts from the Connecting Europe
Facility and Horizon 2020.
One legal act (a Regulation) is necessary to set up the guarantee and the provisioning fund
and do the necessary, limited, changes to the Connecting Europe Facility and Horizon 2020
Regulations. The Regulation will be adopted in co-decision (the ordinary legislative
procedure). A draft amended budget was adopted by the Commission together with the
proposed Regulation.
30. Would the possibility to have "paid in capital" in the EFSI increase its
financing capacity?
Yes, higher paid-in capital (for example via contributions from Member States) in the risk-
bearing capacity of EFSI (currently €21 billion) would allow the EIB to increase its financing
activities and would mobilise additional investments in the real economy.
Research, Horizon 2020 and the European Structural and
Investment Funds
31. As money will be transferred from Horizon 2020 to the EFSI, does this
mean the money initially foreseen for Horizon 2020 is lost?
The seed capital for the EFSI which is taken from the Horizon 2020 to generate additional
investments of at least €315 billion, is not money lost for innovation. On the contrary, this is
money that will be used to attract much more important sums that will then be reinvested
in innovation, delivering higher returns.
The redeployment of money from Horizon 2020 to the Investment Plan represents only
3.5% of the research and innovation financial envelope. Moreover, that money will be used
for investment in innovative projects with a higher leverage effect. With the Investment
15
equity, quasi-equity and venture capital. It is important to bear in mind that the aim is to
offer financing solutions that crowd-in private investors. The EFSI will not give grants and
subsidies.
29. Will mobilising € 8 billion from the EU budget require an amending
Budget 2015? Will that require the mobilisation of some flexibility
mechanisms foreseen in the MFF 2014 -2020 Regulation?
The proposal establishes an EU Guarantee Fund which will provide a liquidity cushion for
the Union budget against potential losses incurred by the EFSI when supporting projects. It
will gradually reach €8 billion by 2020 via payments from the EU budget. This requires an
amendment to the 2015 EU Budget, which will create the necessary new budget lines and
transfer €1.36 billion in commitment appropriations and €10 million in payment
appropriations to these new lines. The €10 million in payments will help cover the
administrative costs of the European Investment Advisory Hub. The overall impact for the
2015 EU Budget is neutral. No legislative changes to the current MFF are needed. The
provisioning of the Guarantee Fund will be constituted on the basis of existing budget
reserves and the reallocation of certain, limited amounts from the Connecting Europe
Facility and Horizon 2020.
One legal act (a Regulation) is necessary to set up the guarantee and the provisioning fund
and do the necessary, limited, changes to the Connecting Europe Facility and Horizon 2020
Regulations. The Regulation will be adopted in co-decision (the ordinary legislative
procedure). A draft amended budget was adopted by the Commission together with the
proposed Regulation.
30. Would the possibility to have "paid in capital" in the EFSI increase its
financing capacity?
Yes, higher paid-in capital (for example via contributions from Member States) in the risk-
bearing capacity of EFSI (currently €21 billion) would allow the EIB to increase its financing
activities and would mobilise additional investments in the real economy.
Research, Horizon 2020 and the European Structural and
Investment Funds
31. As money will be transferred from Horizon 2020 to the EFSI, does this
mean the money initially foreseen for Horizon 2020 is lost?
The seed capital for the EFSI which is taken from the Horizon 2020 to generate additional
investments of at least €315 billion, is not money lost for innovation. On the contrary, this is
money that will be used to attract much more important sums that will then be reinvested
in innovation, delivering higher returns.
The redeployment of money from Horizon 2020 to the Investment Plan represents only
3.5% of the research and innovation financial envelope. Moreover, that money will be used
for investment in innovative projects with a higher leverage effect. With the Investment
15
