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Governance of the EFSI
4. What is the EFSI's governance structure? Who will decide on the
investment guidelines?
A Steering Board will decide on the overall orientation, the investment guidelines, the risk
profile, strategic policies and asset allocation of the Fund. As long as the EIB and the
Commission are the only contributors to the EFSI, the number of members and votes will be
allocated based on size of their contributions and all decisions will be taken by consensus.
When other contributors join the Fund, the number and votes will remain proportionate to
the contributions and decisions will be taken by simple majority, if no consensus can be
found. No decision can be adopted if the Commission or the EIB votes against it.
An Investment Committee will be accountable to the Steering Board. It will vet specific
projects and decide which will receive EFSI support, without any geographic or sectorial
quotas. The Committee will consist of six independent market experts and a Managing
Director who will be in charge of the day-to-day management of the EFSI and chair the
Investment Committee. The Managing Director and his/her deputy will be appointed by the
Steering Board on a joint proposal of the Commission and the EIB.
5. How will the EFSI governance structure ensure independence from the
public and private contributors?
The use of the guarantee fund for each individual investment decisions will be validated by
the Investment Committee consisting of independent professionals receiving a
remuneration for their work in compliance with the investment guidelines. These
independent experts shall have a high level of relevant market experience, inter alia in
project finance, and be appointed by the Steering Board for a renewable fixed term of three
years.
6. What is the role of the EIB board in the decision making?
As contributor to the EFSI, the EIB will have representatives in the Steering Board. As long as
the only contributors to the EFSI are the Union and the EIB, all decisions in the Steering
Board shall be taken by consensus. Since the EFSI is operating within the EIB, any project
supported by the EFSI will require approval according to the EIB’s regular procedures.
7. What is the role of the European Parliament and the Court of Auditors in
the monitoring of the EFSI?
The draft Regulation foresees extensive rules to ensure accountability of the EFSI to the
European Parliament. Monitoring is structured around two key principles:
(a) Reporting: The EIB will report (i) semi-annually to the Commission and (ii) annually
to the European Parliament and the Council on the EIB financing and investment
operations under the Regulation. The report shall be made public. The Commission
will also report to the European Parliament on the application of the Regulation.
(b) Accountability: The European Parliament will have the right to organise at any time
hearings with the Managing Director of the EFSI on the performance of the latter.
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4. What is the EFSI's governance structure? Who will decide on the
investment guidelines?
A Steering Board will decide on the overall orientation, the investment guidelines, the risk
profile, strategic policies and asset allocation of the Fund. As long as the EIB and the
Commission are the only contributors to the EFSI, the number of members and votes will be
allocated based on size of their contributions and all decisions will be taken by consensus.
When other contributors join the Fund, the number and votes will remain proportionate to
the contributions and decisions will be taken by simple majority, if no consensus can be
found. No decision can be adopted if the Commission or the EIB votes against it.
An Investment Committee will be accountable to the Steering Board. It will vet specific
projects and decide which will receive EFSI support, without any geographic or sectorial
quotas. The Committee will consist of six independent market experts and a Managing
Director who will be in charge of the day-to-day management of the EFSI and chair the
Investment Committee. The Managing Director and his/her deputy will be appointed by the
Steering Board on a joint proposal of the Commission and the EIB.
5. How will the EFSI governance structure ensure independence from the
public and private contributors?
The use of the guarantee fund for each individual investment decisions will be validated by
the Investment Committee consisting of independent professionals receiving a
remuneration for their work in compliance with the investment guidelines. These
independent experts shall have a high level of relevant market experience, inter alia in
project finance, and be appointed by the Steering Board for a renewable fixed term of three
years.
6. What is the role of the EIB board in the decision making?
As contributor to the EFSI, the EIB will have representatives in the Steering Board. As long as
the only contributors to the EFSI are the Union and the EIB, all decisions in the Steering
Board shall be taken by consensus. Since the EFSI is operating within the EIB, any project
supported by the EFSI will require approval according to the EIB’s regular procedures.
7. What is the role of the European Parliament and the Court of Auditors in
the monitoring of the EFSI?
The draft Regulation foresees extensive rules to ensure accountability of the EFSI to the
European Parliament. Monitoring is structured around two key principles:
(a) Reporting: The EIB will report (i) semi-annually to the Commission and (ii) annually
to the European Parliament and the Council on the EIB financing and investment
operations under the Regulation. The report shall be made public. The Commission
will also report to the European Parliament on the application of the Regulation.
(b) Accountability: The European Parliament will have the right to organise at any time
hearings with the Managing Director of the EFSI on the performance of the latter.
6
