Page 4 - ePaper
P. 4
QUESTIONS AND ANSWERS
1. Why is this approach to investments new and different?
The Investment Plan put forward by the Commission aims to revive investment in Europe by
addressing the main obstacles to investment in a coherent way. The new approach consists
of three strands:
a) New financial tools (in particular the new European Fund for Strategic Investments),
in partnership with the European Investment Bank, to address the current shortage
of risk-financing in Europe.
b) A pipeline of projects at EU level, and enhanced support for project development
through more user-friendly technical assistance, for public sector stakeholders as
well as private investors.
c) A more stable, business friendly and predictable regulatory environment, at the
European, national, and sub-national level, focussing on completing the single market
for energy, digital and transport and capital markets.
The Investment Plan is a paradigm shift in how public money is used for strategic
investments in Europe.
The need for investments to support jobs and growth is also recognised at the international
level, as witnessed by the G20 Communiqué and Brisbane Action Plan published on 16
November 2014.
2. Why a new European Fund for Strategic Investment (EFSI)?
An essential part of the Investment Plan put forward by the Commission is to set up a new
European Fund for Strategic Investment (EFSI). This will be a dedicated Fund, managed and
hosted by the European Investment Bank (EIB) and co-financed by the EIB and the European
Commission. The Fund will finance strategic projects across the EU in infrastructure such as
broadband, energy and transport; education, research and innovation; renewable energy
and energy efficiency. Part of the new financing will be dedicated to supporting investment
1
by SMEs and middle capitalisation (mid-cap) companies through the European Investment
Fund (EIF), an entity dedicated to this kind of financing within the EIB-Group.
The rationale of the EFSI is to be able to capture riskier projects and engage in activities that
are of greater strategic interest, and thus more complex to structure. This goes beyond
existing EU programmes and the more traditional activities of the EIB and other financial
institutions.
The new Fund, which will aim at strategic investment choices, should be attractive to private
investors as it assumes the more complex and risk-bearing part of the transaction.
1
While SMEs are defined as having fewer than 250 employees, mid-caps are broadly said to have between 250
and 3000 employees.
3
1. Why is this approach to investments new and different?
The Investment Plan put forward by the Commission aims to revive investment in Europe by
addressing the main obstacles to investment in a coherent way. The new approach consists
of three strands:
a) New financial tools (in particular the new European Fund for Strategic Investments),
in partnership with the European Investment Bank, to address the current shortage
of risk-financing in Europe.
b) A pipeline of projects at EU level, and enhanced support for project development
through more user-friendly technical assistance, for public sector stakeholders as
well as private investors.
c) A more stable, business friendly and predictable regulatory environment, at the
European, national, and sub-national level, focussing on completing the single market
for energy, digital and transport and capital markets.
The Investment Plan is a paradigm shift in how public money is used for strategic
investments in Europe.
The need for investments to support jobs and growth is also recognised at the international
level, as witnessed by the G20 Communiqué and Brisbane Action Plan published on 16
November 2014.
2. Why a new European Fund for Strategic Investment (EFSI)?
An essential part of the Investment Plan put forward by the Commission is to set up a new
European Fund for Strategic Investment (EFSI). This will be a dedicated Fund, managed and
hosted by the European Investment Bank (EIB) and co-financed by the EIB and the European
Commission. The Fund will finance strategic projects across the EU in infrastructure such as
broadband, energy and transport; education, research and innovation; renewable energy
and energy efficiency. Part of the new financing will be dedicated to supporting investment
1
by SMEs and middle capitalisation (mid-cap) companies through the European Investment
Fund (EIF), an entity dedicated to this kind of financing within the EIB-Group.
The rationale of the EFSI is to be able to capture riskier projects and engage in activities that
are of greater strategic interest, and thus more complex to structure. This goes beyond
existing EU programmes and the more traditional activities of the EIB and other financial
institutions.
The new Fund, which will aim at strategic investment choices, should be attractive to private
investors as it assumes the more complex and risk-bearing part of the transaction.
1
While SMEs are defined as having fewer than 250 employees, mid-caps are broadly said to have between 250
and 3000 employees.
3
