Investment Plan for Europe

© European Union 2015 - European Parliament/Flickr (CC BY-NC-ND 2.0)

A key element of Juncker’s Investment Plan for Europe was passed in June 2015: the European Fund for Strategic Investments (EFSI), which will mobilise 315 billion euros for the real economy. The EFSI will finance long-term infrastructure and projects for small- and medium-sized enterprises, among other things. The instruments offer opportunities for German companies in need of capital. A European investment portal and a hub for investment advice will be set up to support them.

The package aims to bolster competitiveness and growth. For two decades, investment has been on the decline in Europe, and growth potential has been developing more slowly than among our trading partners. The investment backlog is due to a lack of liquidity and other non-financial obstacles.

The plan is accompanied by measures for improving the investment environment. The Capital Markets Union will aim to facilitate access to venture capital and create a unified framework in Europe. Structural reforms will be an important instrument for improving the investment climate.

The fund is initially fixed for four years. The EU is providing a guarantee of 16 billion euros, and the European Investment Bank (EIB) is providing a guarantee of 5 billion euros. The target total of 315 billion euros is to be reached through capital market leverage and other investors. This will create up to 1.3 million new jobs.