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Commission welcomes Parliament’s endorsement of risk-sharing instruments for Member States worst hit by the financial crisis, to contribute to investment and job creation

19/04/2012

The European Parliament has today approved the Commission’s proposal enabling the use of cohesion policy allocations still available to back-up guarantees and loans by financial institutions such as the European Investment Bank (EIB). EU funds will be used to create so-called “risk-sharing instruments”. The measure is intended to address the serious obstacles faced by some Member States, especially Greece, in raising the private financing needed to implement key projects which can only be part-financed by public funds. This tool will support more investment in the economy and therefore creation of jobs.

Johannes Hahn, European Commissioner for Regional Policy commented: “This new instrument will allow the realisation of infrastructure projects and provide a much-needed boost to economic activity and job creation in many financially straitened Member States, especially Greece. This represents an efficient use of EU resources which can help leverage more private investment. I look forward to its swift adoption by the Member States.”

The proposal was presented following a request by Eurozone Heads of State and Government to enhance synergies between EIB loan programmes and EU investment in Member States most affected by the crisis. The measure is foreseen for countries in receipt of special macro-economic assistance: currently, Greece, Ireland and Portugal. However, it will be only implemented upon a Member State request. It has been so far only requested by Greece.

More information available in the press release.