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.