President of the European Commission, Jose Manuel Barroso said: "The risk-sharing instrument will turn our Structural funds into a real investment tool. In Greece for example €1.5 billion can generate at least €2.25 billion for lending or guarantees to infrastructure projects. This is yet another proof of strong European engagement for the future growth of Greece and new jobs for Greek people. I welcome the Parliament's rapid adoption, only 6 months after we have presented our proposal."
The European Parliament has just approved a Commission proposal allowing cohesion policy allocations still available to back up guarantees and loans from financial institutions such as the European Investment Bank (EIB). EU funds will be used to create ‘risk-sharing instruments’. This measure is intended to resolve the serious difficulties faced by certain Member States, particularly Greece, in raising the private finance needed to implement major projects that can only be partly financed from public funds. This instrument will encourage investment in the economy and hence job creation.