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.