The Investment plan for Europe: Stock Taking and Next Steps

230

370

The estimated investment gap end of 2013

3,039

2,606

"Sustainable" trend of investment assuming a share in GDP of 21-22%

Real gross fixed capital formation, € bn in 2013 prices

2,416

3,021

In Belgium, the drop was less steep but public invesment has been low for quite some time

0

2

4

6

8

10

0

5

10

15

20

25

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15e 16f 17f

Public and private investment (%GDP)

BE private investment EU28 private investment

BE public investment (right-hand scale) EU28 public investment (right-hand scale)

A three pillar approach to strengthen the risk bearing capacity of our economies

1. MOBILISING FINANCE FOR INVESTMENT

2. MAKING FINANCE REACH THE REAL ECONOMY

3. IMPROVING THE INVESTMENT ENVIRONMENT

3rd pillar - Improving the investment environment

At European Union level: • Implementing the Better Regulation Agenda • Establishing the Capital Markets Union • Deeping the Single Market

• Energy Union • Digital Single Market • Single market for services

At Member state level: • Pursuing growth-friendly fiscal consolidation • Implementing structural reforms • Tackling specific investment barriers

3rd pillar - Improving the Investment Environment: Capital Markets Union

Capital Markets Union

• Diversify and amplify funding possibilities • Ensure free movement of capital within the

Single Market • Action plan adopted in September 2015: 33

measures to be implemented by 2019 • First measures adopted:

• New rules to support investment by insurers and reinsurers in infrastructure (into force since 2/04/2016)

• Proposal to simplify prospectus requirements (draft report by EP adopted on 16/03/2016 – Council by Summer 2016)

• New regulatory framework to restart markets for simple, transparent and standardised securitisations (adopted by Council – EP before end 2016)

2nd pillar - Making finance reach the real economy

Matching investment opportunities with funding • European Investment Project Portal • https://ec.europa.eu/priorities/european-investment-project-portal-

eipp_en

Strengthening Advisory services • European Investment Advisory Hub • http://www.eib.org/eiah/index.htm

EIPP – test version

EIPP

2nd pillar - Making finance reach the real economy

State of Play (mid June 2016)

• Around 260 transactions in 26 Member States corresponding to over € 100 billion in total investment (34% of overall objective)

• 78 infrastructure projects under EFSI

• 188 SME financing agreements to benefit nearly 150,000 SMEs and Midcaps

• Crowding in significant amount of additional finance from private and public investors (85% of total investment mobilised)

• SME Window of EFSI exceeds expectations (total investment of € 49 billion; i.e. 65% of target)

State of Play (end May 2016)

41%

19%

13%

10%

9% 8%

Infrastructure and Innovation

Window

Energy Transport Environment and Resource Efficiency RDI Smaller Companies Digital

57% 26%

9% 8%

SME Window

RDI

Digital

Social Infrastructure

Other

State of Play (mid June 2016)

Mobilising finance for investment

• Extending the lifetime of EFSI beyond 2018

• Scaling up the SME Window

• Simplify the combined use of the European Fund for Strategic Investments and the European Structural and Investment funds

Making finance reach the real economy

• Targeted outreach and development of advisory action at the local level

• Promote the European Investment Project Portal

Improving the Investment Environment

• Continuing to deliver on Single Market priorities

• Provide further clarity and review, where appropriate, accounting

aspects of public-private partnerships

• Follow up on implementation of the country-specific recommendations

Looking forward

More information

Stock Taking Communication http://ec.europa.eu/priorities/sites/beta-political/files/1_en_act_part1_v11.pdf

Latest state-of-play and updates on the Investment Plan for the EU http://ec.europa.eu/priorities/jobs-growth-investment/plan/index_en.htm

Access to finance supported by the EU: http://europa.eu/youreurope/business/funding-grants/access-to-finance/index_fr.htm

6 simple steps to EIB financing for innovative companies: http://www.eib.org/products/helpingyouinnovate/index.htm?launchtool

European Structural and Investment funds (ERDF, ESF, EAFRD, EMFF, CF): https://www.fi-compass.eu/esif/european-structural-and-investment-funds-esif

Manual on Government Deficit and Debt: http://ec.europa.eu/eurostat/web/government-finance-statistics/methodology/manuals

Note on Stastical Treatment of PPP Contracts: http://ec.europa.eu/eurostat/documents/1015035/7204121/Clarification-note-Statistical-treatment-of-PPP-contracts-accompanying-2016-MGDD.pdf/ed12cf33-f8eb-4e7e-aa58-29a5fbc3f978