The EU Investment Plan and ESI funds

STRUCTURED DIALOGUE WITH ESIF PARTNERS GROUP OF EXPERTS

BRUSSELS, 23 APRIL 2015

I. The Investment Plan for Europe

II. ESIF and the Investment Plan

I. The Investment Plan for Europe

Strong boost to strategic investments Better access to investment finance

for SMEs and mid-cap companies Strategic use of EU budget Better use of the European Structural and

Investment Funds

MOBILISING FINANCE FOR INVESTMENT

Project pipeline preparation and selection Technical assistance at all levels Strong cooperation between National

Promotional Banks and the EIB Follow-up at global, EU, national and

regional level, including outreach activities

MAKING FINANCE REACH THE REAL ECONOMY

Predictability and quality of regulation Quality of national expenditure, tax systems

and public administration New sources of long-term financing

for the economy Removing non-financial, regulatory barriers

in key sectors within our Single Market

IMPROVED INVESTMENT ENVIRONMENT

THE EU INVESTMENT TRIANGLETHE EU INVESTMENT TRIANGLE

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EU guarantee

EUR 16 bn*

EU guarantee

EUR 16 bn*

EUR 16 bn

x 15

Long-term investments circa EUR 240 bn

SMEs and mid-cap firmscirca EUR 75 bn

EUR 5 bn

European Fund for Strategic InvestmentsEUR 21 bn

Total extra over 2015-17:circa EUR 315 bn**

EUR 5 bn

Possible other public and

private contributions

* 50% guarantee = EUR 8 bn from Connecting Europe Facility (3.3), Horizon 2020 (2.7) and budget margin (2)** Net of the initial EU contributions used as guarantee: EUR 307 bn

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Mobilising finance for investment – leverage Mobilising finance for investment – leverage

EUR 75 b

n

EUR 240 bn

EUR 2

0 bn (a

t lea

st)

EUR 315 bn

Strategic investments of European significance in energy, transport,

broadband, education, research and innovation

Priorities at national and regional level (e.g. SMEs,

research, transport, environment)

SMEs and mid-cap companies

Impact of Member States' contributions to the Fund

Positive impact on investment throughout

the economy

Positive impact on investment throughout

the economy

Will

depend o

n com

mitm

ent

Over three years

Improved investment environment at EU and national level

European Fund for Strategic Investments:

EUR 21 bn (initially)

Better use of the European Structural

and Investment Funds

Possible Member States' contributions to the Fund

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'overall doubling'> EUR 20bn

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II. ESIF and the Investment Plan for Europe

Investment Plan for Europe

1. Mobilise finance for investment

2. Make finance reach the real economy

3. Improve investment environment

European Fund for Strategic Investment (EFSI)

Better use of ESI Fundsi.a. extensive use of Financial

Instruments

≥ EUR 20bn additional investment for 2015-2017 SMEs Research Transport Environment

2. Make finance reach the real economy

3. Improve investment environment

Technical Assistance

Ex-ante Conditionalities

JASPERSFI-Compass

≥ EUR 315bnLong-term investmentsSMEs and mod-cap firms

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Through loans, guarantees, equity, venture capital, etc.

2014-2020What's New?

Regulation: FI extended to ALL thematic objectives and all ESIF funds

Additional support: FI Compass –advisory service, 'off-the shelf' instruments,guidance documentation

Leverage EffectLeverage EffectFinancial Instruments (FI)Resource-efficient way of using EU budget funds to enable investment in the economy

TARGETS At least an overall doubling of the use of FI

(EUR 12bn to ± 30bn)

Initial EU Investment

Total InvestmentTarget Total Investment

Doubling of financial instruments

• Financial instruments are particularly effective to increase the impact of ESIF

• An overall doubling of the use of financial instruments in 2014-2020 relative to 2007-2013 (increase from EUR 12 billion to close to EUR 30 billion) is an ambitious but realistic target

• This extra EUR 18 billion could leverage additional investments between EUR 40-70bn (of which at least EUR 20bn in first three years)

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How is this target achievable?

% to deliver through financial instruments:

•5% Research, Development and Innovation

•10% ICT

•50% SME support

•20% low carbon economy

•5% environment and resource efficiency

•10% sustainable transport

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Why is this target achievable?

• Legal framework for 2014-2020 is open to all thematic objectives and widens implementation options

• SME Initiative is up and running: ES signature on 26th January

• "Off-the-shelf instruments": ready-to-use and state aid cleared templates for financial instruments

• Fi-compass: knowledge hub for guidance and advice on financial instruments http://www.fi-compass.eu/

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Thank you for your attention!