European Investment Bank publishes EFSI evaluation
On 6 October 2016 the European Investment Bank (EIB) published an evaluation assessing the functioning of the European Fund for Strategic Investments (EFSI, “Juncker Plan”). EFSI is one of the three pillars of the Investment Plan for Europe (IPE), which aims to reduce investment gaps in the EU. Horizon 2020 has contributed 2,2 billion euros to the budget of EFSI in 2015. The Commission has already proposed to increase and extend EFSI until 2020.
Of the seven sectors in which projects benefit from the public guarantee of the EFSI, energy has the biggest share with 46% of total funding under the 'infrastructure and innovation' portfolio.
The conclusions of the assessment are that:
- EFSI was ramped up in a short period of time and its governance structures were put in place swiftly.
- In terms of approved operations, EFSI is on track to reach the target of mobilising EUR 315 billion of total investment. Signatures and disbursements, however, need to be carefully monitored to ensure that EFSI makes a difference in the real economy.
- The EIB Group continues to innovate under EFSI. It develops and rolls out new products with higher risk profiles and investment multipliers, and engages with many new counterparts.
- EFSI has triggered major organisational change within the EIB Group.
The evaluation suggests several areas for improvement, including:
- complementarity with the other IPE pillars;
- the distribution of EFSI’s portfolio across all Member States;
- private sector participation;
- additionality; and governance.