Page 8 - ePaper
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11. The problem is too much red-tape and regulatory burden. What will the
Commission do about it?
The Commission recognises that the right regulatory environment can make a major
difference when it comes to investment. For this reason, the Investment Plan lists how to
remove barriers in essential areas like energy, telecom, transport, services and research.
Some important measures will be spelled out in the Commission Work Programme for 2015
(which will be presented before the end of December, after discussion with Parliament and
Council). Accelerated work towards a Capital Markets Union and contributing to the
diversification of funding sources will be essential. Putting in place the right regulatory
environment is a joint national and EU responsibility and has to be tackled at all levels.
12. Why don't you propose a new capital increase for the EIB instead?
In 2012, EU Member States agreed to increase the EIB’s paid-in capital by € 10 billion, with
the understanding that this would allow the EIB to increase lending activity by 40% between
2013 and 2015. This additional EIB lending is expected to support € 180 billion of additional
investment across Europe by the end of 2015. The EIB is well on track to deliver on the
commitment to provide an enhanced response and looks set to exceed the target agreed in
2012.
The EIB has demonstrated a firm response to the economic crisis and has contributed to
improving the economic and financial situation. While during the crisis, regular channels of
bank lending and market financing were impaired, today much more liquidity is available
both in financial institutions and in the corporate sector. This is why, a more targeted
initiative is necessary to ensure the effective support of activities that banks and markets
will not finance on their own. This is what the Investment Plan is about.
13. Where does the money really come from?
Today the problem is not a lack of money but that it is not being put to productive use as it
languishes on corporate's and individuals' bank accounts. The challenge is to put this money
to work and channel it into productive investments. We can do this by making smarter use
of the EU budget resources and by redirecting the excess risk bearing capacity of the EIB.
By doing so we create a risk-buffer of € 21 billion which allows us to catalyse at least € 315
billion in investments.
The objective is to mobilise additional investments that would not have happened in a
“business as usual”-scenario. In this context, the role of the new Fund and other policies is to
mobilise public money and kick-start private investment and co-financing without creating
new debt. Through the new Fund, the money invested will be put to work ensuring an as
high multiplier effect as possible. This means: the more resources are available for financing,
the more projects will be financed leading to more jobs and growth for the EU economy.
The package consists of the following:
1) Creating a guarantee in the EU budget of € 16 billion.
7
Commission do about it?
The Commission recognises that the right regulatory environment can make a major
difference when it comes to investment. For this reason, the Investment Plan lists how to
remove barriers in essential areas like energy, telecom, transport, services and research.
Some important measures will be spelled out in the Commission Work Programme for 2015
(which will be presented before the end of December, after discussion with Parliament and
Council). Accelerated work towards a Capital Markets Union and contributing to the
diversification of funding sources will be essential. Putting in place the right regulatory
environment is a joint national and EU responsibility and has to be tackled at all levels.
12. Why don't you propose a new capital increase for the EIB instead?
In 2012, EU Member States agreed to increase the EIB’s paid-in capital by € 10 billion, with
the understanding that this would allow the EIB to increase lending activity by 40% between
2013 and 2015. This additional EIB lending is expected to support € 180 billion of additional
investment across Europe by the end of 2015. The EIB is well on track to deliver on the
commitment to provide an enhanced response and looks set to exceed the target agreed in
2012.
The EIB has demonstrated a firm response to the economic crisis and has contributed to
improving the economic and financial situation. While during the crisis, regular channels of
bank lending and market financing were impaired, today much more liquidity is available
both in financial institutions and in the corporate sector. This is why, a more targeted
initiative is necessary to ensure the effective support of activities that banks and markets
will not finance on their own. This is what the Investment Plan is about.
13. Where does the money really come from?
Today the problem is not a lack of money but that it is not being put to productive use as it
languishes on corporate's and individuals' bank accounts. The challenge is to put this money
to work and channel it into productive investments. We can do this by making smarter use
of the EU budget resources and by redirecting the excess risk bearing capacity of the EIB.
By doing so we create a risk-buffer of € 21 billion which allows us to catalyse at least € 315
billion in investments.
The objective is to mobilise additional investments that would not have happened in a
“business as usual”-scenario. In this context, the role of the new Fund and other policies is to
mobilise public money and kick-start private investment and co-financing without creating
new debt. Through the new Fund, the money invested will be put to work ensuring an as
high multiplier effect as possible. This means: the more resources are available for financing,
the more projects will be financed leading to more jobs and growth for the EU economy.
The package consists of the following:
1) Creating a guarantee in the EU budget of € 16 billion.
7
