An investment plan for Europe

Europe urgently needs to close its investment gap. As a consequence of the economic crisis, the level of investment in the European Union has dropped significantly, and only a partial rebound is projected over the coming years. Economic recovery, job creation, long-term growth and competitiveness are being hampered as a result.

ACT

Communication from the Commission to the European Parliament, the Council, the European Central Bank, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank: An investment plan for Europe (COM(2014) 903 final of 26.11.2014).

SUMMARY

BACKGROUND

The communication sets out an investment plan to serve three policy objectives:

• reverse downward investment trends and help boost job creation and economic recovery, without weighing on national public finances or creating new debt;
• move towards meeting the long-term needs of the EU economy and increase competitiveness;
• strengthen the European dimension of human capital, productive capacity, knowledge and physical infrastructure, with a special focus on aspects vital to the EU’s single market.

WHAT WILL THE PLAN DO?

• Mobilise at least €315 billion in additional investment over 3 years, maximising the impact of public resources and unlocking private investment.
• Target initiatives to ensure that this extra investment meets the needs of the real economy.
• Put in place measures to provide simpler, better and more predictable regulation, in particular removing obstacles to growth.
• Reinforce the level-playing field and remove barriers to investment in the single market.
• Open up new sources of long-term financing.

KEY POINTS

A new European Fund for Strategic Investments (EFSI) is being set up in partnership between the European Commission and the European Investment Bank (EIB).

Initially, the EU budget will guarantee €16 billion, and the EIB will commit €5 billion. EU countries and private companies have the opportunity to contribute, with every €1 billion of funding resulting in at least €20 billion of capital.

A pipeline of projects will be established at EU level, and an investment advisory ‘hub’ will be set up to bring together expertise and strengthen technical assistance at all levels. The Commission will engage with investors, project promoters and institutional stakeholders to facilitate key investment projects and make sure projects access appropriate sources of funding.

For more information, see:

• the European Commission’s 10 priorities: Investment plan;
• Report of the Special Task Force on Investment in the EU;
• Proposal for a regulation on the European Fund for Strategic Investments.

last update 20.05.2015