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InvestEU: Commission proposes doubling budget, addition of fifth window to safeguard EU strategic autonomy in key sectors

The Commission proposed two main changes to the InvestEU Programme on 29 May as partially agreed between co-legislators in April 2019.

date:  04/06/2020

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InvestEU is the EU's proposed flagship investment programme designed to kick-start the European economy. The first proposed change would see an increase of the InvestEU budget to reflect higher investment needs and an environment of increased risk. The financial envelope for the sustainable infrastructure window would be doubled, in line with the President's Communication "Europe's moment: Repair and Prepare for the Next Generation". The second proposed change would broaden InvestEU’s scope through the addition of a fifth window – the strategic European investment window – in order to account for the future needs of the European economy and to promote and secure strategic autonomy for the EU in key sectors. In the current coronavirus crisis, the market allocation of financial resources is not fully efficient and perceived risk impairs private investment significantly. If left unchecked, this can contribute to a ‘credit crunch’. A key feature of InvestEU is de-risking projects to crowd in private finance and this is particularly valuable and should be utilised under these circumstances.