The latest video in the European Economy Explained series, "Financial Instruments: Smart Money", shows how the EU is maximising the value of EU taxpayers’ funds by putting them to work as loans or to provide guarantees, as well as by investing through special funds setup with financial institutions, including the European Investment Bank, local lenders and private investors. Using these types of financial instruments greatly magnifies the impact of EU support for the economy. It allows EU funds to be recycled so they can be used time and again. Moreover, the multiplier effect means that one euro from the EU budget can stimulate 15 euros in funding, thus allowing the EU to support investment on a large scale. EU financial instruments also lower financial risk for banks and investors such that they are more willing to invest in worthwhile projects or businesses that might otherwise struggle to secure financing. Financial instruments are used to benefit Cohesion policy, SMEs, employment, research, and are the primary tool of the European Fund for Strategic Investments (EFSI), the centrepiece of the Commission’s Investment Plan for Europe.