MEPs vote on the European Fund for Strategic InvestmentsApril 20, 2015
Hat: MEPs vote on the European Fund for Strategic Investments
Funding Scheme: 2015-04-20
On Monday 20th April the Parliament’s budget and economic committees vote on the European Fund for Strategic Investments. This fund constitutes the basis of the Juncker Plan which is aimed at boosting investment in strategic projects around Europe by mobilizing 315 billion euro for the period 2015-2017.
The aim of EFSI, to be run by the European Investment Bank (EIB), is to provide public support for projects that are economically viable, but would not otherwise happen because private investors are hesitant to finance them due to the uncertain economic situation and the higher risk involved. EFSI will assume part of that risk, thus encouraging private investors to get on board.
The fund is planned to include a €16 billion guarantee from the EU and a further €5 billion from the EIB. This would allow the EIB to issue bonds for three times this amount and use the cash to co-finance projects alongside private investors so that every euro spent by the investment fund will attract an additional €15 in investment from companies and public authorities, leading to an overall investment of €315 billion.
The plan is not intended to replace existing EU and EIB programmes, but instead will complement them.
Url description: European Parliament
Url info description: http://www.europarl.europa.eu/news/en/news-room/content/20150417STO42603/html/MEPs-vote-on-new-fund-to-put-EU-investment-plan-into-practice