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The Knowledge-Sharing Platform

26 Nov 2014

Commission launches Investment Plan

On Wednesday, 26 November 2014, the new Commission launched an “Investment Plan for Europe”. The so called "Juncker plan” provides the creation of a European Fund for Strategic Investment (EFSI) within the EIB. The EU budget will guarantee financing of €16 billion and the EIB will allocate a further €5 billion from its capacity to support higher-risk operations. On the basis of a multiplying effect of 1 to 3, it is expected that the EIB will be able to raise €60 billion. Aiming for a cumulative multiplying effect of between 1and 15 on average, the Commission anticipates that the total funding could be as high as €315 billion.

The Commission's strategy aims to bring private funds back to Europe. The EU guarantee will be built up gradually to reach €16 billion (over three years) and will be accompanied by a provision of €8 billion. This money will come directly from the EU budget (€2 billion), the Connecting Europe Facility (€3.3 billion) and Horizon 2020 (€2.7 billion). The Structural Funds will also feed in (see also the graph below). As a next step, the Plan has to be endorsed by the legislator (Council and Parliament).

To read the official document please click here.


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