The European Fund for Strategic Investments (EFSI)

As one of the three pillars1 of the investment plan for Europe (‘plan Juncker’), the EFSI will play a central role in mobilising investments in the EU. An analysis of the new silver lining behind the clouds.

After approval by both the Members of the European Parliament (Wednesday, 24 June) and the Council (Thursday, 25 June), the EFSI is ready for take-off. The adoption of the Regulation paves the way for new investments to begin after its entry into force on 4 July 2015.

The EFSI will be established within the EIB and managed by the EU Bank. It will be endowed with a EUR 16 billion guarantee from the EU budget and EUR 5 billion from the EIB´s own resources. The EIB will use the EFSI funds and guarantee to provide catalytic, risk-bearing capacity and unlock additional financing of at least EUR 315 billion for investment in strategic infrastructure, innovation and small and medium enterprises (SMEs). The EFSI operations will take place within the EIB and there will be wide sectorial and product eligibility for EFSI operations, but no country or sectorial quotas.

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1 Besides mobilising investments of at least €315 billion in three years, the two other pillars are: supporting investment in the real economy and creating an investment friendly environment.