A ‘risk-sharing instrument’ to help the Member States worst hit by the crisis
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.