#investEU Newsletter

The European Commission and the European Investment Bank (EIB) Group have delivered on their pledge to mobilise €500 billion in investment under the Investment Plan for Europe. Some 1,400 operations have been approved under the European Fund for Strategic Investments (EFSI), using a budget guarantee from the European Union and own resources from the EIB Group. They are expected to trigger close to €514 billion in additional investment across EU countries and to benefit some 1.4 million small and mid-sized companies. In 2017, when the European Council and the Parliament agreed to broaden the EFSI’s scope and size, the goal was to mobilise €500 billion by the end of 2020. The money was intended to help close the investment gap left as a result of the 2007/8 financial and economic crisis.

For more information and project examples for each Member State:

• Press release
• Investment Plan results
• Factsheet
• EIB/JRC 2019: Assessing the macroeconomic impact of the EIB Group

As part of Next Generation EU, Europe’s new recovery instrument to kick-start the economy after the severe consequences of the coronavirus crisis, the European Commission has proposed a new Solvency Support Instrument (SSI), building on the European Fund for Strategic Investments (EFSI). As a result of the unprecedented economic shutdown, many European companies are facing serious solvency difficulties. The Solvency Support Instrument will help match the recapitalisation needs of otherwise healthy companies across Europe, which are at risk because of the crisis. It will have a budget of €31 billion, aiming to unlock €300 billion in solvency support for companies from all economic sector, and prepare them for a cleaner, digital and resilient future.

For more information:

• Questions and Answers: Solvency Support Instrument
• Factsheet

As of June 2020, EFSI is expected to trigger €514 billion in additional investments and to benefit about 1.4 million small and mid-sized companies.

• Solvency Support Instrument: Commission proposes new instrument building on EFSI
• Austria: Investment Plan for Europe: EIB finances Austrian wind farms of Windkraft Simonsfeld;
• Belgium: EIB signs collaboration with Israel Innovation Authority and €50 million financing agreement with Pluristem to develop therapies for COVID-19 and other unmet medical needs;
• France: Plan d'investissement : la Banque européenne d'investissement cofinance la construction du parc éolien en mer de Fecamp à hauteur de 450 millions d'euros;
• France: Investment Plan: European Investment Bank provides maiden financing to in'li to speed up construction of affordable housing in Île-de-France;
• Finland: European and Nordic support for first Finnish PPP financing for public schools;
• Germany: Investment Plan for Europe: European Investment Bank to provide BioNTech with up to €100 million in debt financing for COVID-19 vaccine development and manufacturing;
• Italy: EU boosts financing for Italian SMEs with €30 million from European Investment Fund;
• Poland: Investment Plan: first EIB support for solar energy project in Poland;
• Poland: Ignitis Group borrows €60m from EIB for its first wind farm project in Poland;
• Spain: Green recovery: EIB finances the largest solar project in Andalusia, Spain;
• Spain: EIB Group and Banco Sabadell provide €576 million to finance SMEs and mid-caps;
• Spain: Support for innovation in the European car industry: EIB finances Gestamp's RDI strategy to the tune of €200 million
• Sweden: EU backs Norrsken VC Fund for social and environmental investments;
• Multi-country: Agriculture and bioeconomy: EIB approves €700 million of financing under the Investment Plan for Europe to support private investment across the EU.

Another important goal of the Juncker Plan is to help projects get off the ground. The European Investment Advisory Hub provides technical assistance and advice for fledgling projects. Since its launch in 2015, the Hub has handled more than 1,700 requests from project promoters in all EU countries, of which more about 500 are benefitting from tailored advisory support. Almost 200 of these have already fed into the EIB lending pipeline representing estimated investment costs of EUR 41 billion. The IEAH has recently published its annual activity report containing, in particular, detailed information about the facts mentioned above.

For more information:

• European Investment Advisory Hub (EIAH)

As of June 2020, 1,025 projects have been published on the European Investment Project Portal – an online meeting place for project promoters and investors. These cover all major sectors of the EU economy, with total investment proposed amounting to almost €70 billion. More than 70 projects have received private financing since being published on the Portal. The Portal also offers additional services, such as the organisation of (online) matchmaking events.

For more information:

• European Investment Project Portal (EIPP)

As part of the efforts to kick-start the European economy following the coronavirus shock, the European Commission has proposed an enhanced InvestEU programme under the Next Generation EU package, introducing two main changes. Firstly, it brings about an increase of its budget to reflect the higher investment needs and an environment of increased risk. The financial envelope for the sustainable infrastructure window is doubled. Secondly, it broadens the scope of InvestEU through the addition of a fifth window – the strategic European investment window – in order to cater for the future needs of the European economy and to promote and secure EU strategic autonomy in key sectors.

More than 20 entities have applied for the pillar assessment, which is a preliminary step to become implementing partner under InvestEU. Commission Services organised seminars and initial discussions with potential implementing partners. Consultations with the EIB Group and potential implementing partners on the investment guidelines are progressing. However, the guidelines will be subject to an additional round of consultations for a new chapter on InvestEU’s proposed fifth window on European strategic investment. The Commission has set up working groups involving the EIB Group and potential implementing partners on the InvestEU risk methodological framework and on sustainability proofing and climate tracking. These are working on methodological guidance.

The InvestEU Programme is one of the Multiannual Financial Framework (MFF) proposals tabled by the Commission with the aim of boosting private and public investment in the EU and facilitating access to financing. The programme will bring together under one roof investment support programmes in the Union (building on the European Fund for Strategic Investments, the EFSI, and 13 existing financial instruments under the current multiannual financial framework).

InvestEU, under the updated Commission proposal, will put aside some €34 billion of the EU budget, creating €75 billion in guarantees. This will trigger at least €1 trillion in additional investment. The InvestEU Programme consists of the InvestEU fund, which aims to trigger investment in five policy areas: sustainable infrastructure; research, innovation and digitisation; small and medium-sized businesses; social investment and skills; and strategic European investment. InvestEU will also make an important contribution to the European Green Deal Investment Plan and Just Transition Mechanism. The InvestEU advisory hub will provide technical support and assistance to help with the preparation, development, structuring and implementation of projects, including capacity building. The InvestEU portal will bring together investors and project promoters by providing an easily-accessible and user-friendly website.

The key novelty of the InvestEU Fund is that it is open to implementing partners other than the European Investment Bank (EIB) Group. 25% of the EU guarantee will be open to other international financial institutions (such as European Bank for Reconstruction and Development, Council of Europe Bank, Nordic Investment Bank) and to national promotional banks and institutions (NPBIs). The aim of this direct involvement of implementing partners other than the EIB Group (the only implementing partner under the EFSI and for most of existing financial instruments) is to enhance geographical and sectoral diversification of projects supported by reaching out to a wider range of local promoters.

For more information:

• Questions and Answers: The proposed InvestEU Programme
• Questions and Answers: Solvency Support Instrument
• The InvestEU programme - legal texts and factsheets
• Becoming an Implementing Partner in the context of the InvestEU Programme – Pillar assessment