2013 — the European Fund for Strategic Investments - Main contents

Summary of Legislation
Legislative text

1. Summary of Legislation

European Fund for Strategic Investments

SUMMARY OF:

Regulation (EU) 2015/1017 — the European Fund for Strategic Investments, the European Investment Advisory Hub and the European Investment Project Portal

WHAT IS THE AIM OF THE REGULATION?

It establishes:

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a European fund for strategic investments (EFSI),
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an EU guarantee fund,
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a European investment advisory hub and
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a European investment project portal.

It specifies their operating conditions.

KEY POINTS

The EFSI, with its capacity to shoulder risks for the European Investment Bank (EIB) through its EU guarantee, supports investment and increased access to finance for companies with up to 3,000 employees. Particular emphasis is given to small- and medium-sized enterprises (SMEs) and small middle-capitalisation* companies.

The EFSI governance consists of a Steering Board, a Managing Director, a deputy Managing Director and an Investment Committee.

The management of the EFSI is based on an agreement between the European Commission and the EIB.

In principle, the projects the EFSI supports carry a higher risk than those the EIB normally backs. They aim to create jobs and sustainable economic growth.

To be eligible for EFSI support, projects must be:

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economically and technically viable;
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maximise use of private sector capital;
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be consistent with EU policies; and
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provide additionality* by addressing market failures or sub-optimal investment situations.

EU guarantee and guarantee fund

The guarantee may be used to support objectives such as:

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research, development and innovation, through, for example:
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  projects in line with Horizon 2020;
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  research infrastructures;
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  knowledge and technology transfer;

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development of the energy sector (e.g. energy efficiency, renewables), transport infrastructures and equipment, as well as environmental protection and resource efficiency;
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development and deployment of information and communication technologies;
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human capital (education), culture and creative industries and health (more effective medicines);
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financial support to companies with up to 3,000 employees (for example, working capital and risk finance).

The guarantee may be used to cover EIB loans or other forms of financing or credit, including in favour of national promotional banks or institutions, investment platforms or funds. EIB funding or guarantees to the European Investment Fund (EIF) are also eligible for guarantee coverage.

The EU guarantee may not be higher than €16 billion.

The EU guarantee fund is financed from the general EU budget and other sources of income such as returns on the investment it makes.

European investment advisory hub

The hub provides advisory support to identify, prepare and develop investment projects.

It acts as a single point-of-entry for technical assistance in the areas relevant for the EFSI, especially on energy efficiency and transport infrastructure.

The EU contributes up to €20 million annually towards its costs until the end of 2020.

European Investment Project Portal

This is a publicly-accessible and user-friendly database containing details of current and future investment projects in the EU.

Agreement between the European Parliament (EP) and the European Investment Bank (EIB)

In spring 2017, the EP and the EIB signed an agreement under Regulation (EU) 2015/1017 (Article 17). It concerns the detailed arrangements for sharing information between the EP and the EIB, including on the selection procedure for the EFSI Managing Director and the EFSI Deputy Managing Director.

At the EP’s request, the Chairperson of the EFSI Steering Board and the Managing Director are to report to it on the performance of the EFSI. This may include participating in hearings before the EP, issuing reports and responding to questions.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 4 July 2015.

BACKGROUND

For more information, see:

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Investment plan (European Commission)
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European Fund for Strategic Investments (EFSI)(European Investment Bank)

KEY TERMS

Middle-capitalisation: although there is no common EU definition, these companies, also known as mid-caps, are broadly said to have between 250 and 3,000 employees.

Additionality: in this context, any funding from EFSI may not replace national spending by an EU country, financing under an EU programme or regular EIB operations.

MAIN DOCUMENT

Regulation (EU) 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments, the European Investment Advisory Hub and the European Investment Project Portal and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013 — the European Fund for Strategic Investments (OJ L 169, 1.7.2015, pp. 1-38)

Successive amendments to Regulation (EU) 2015/1017 have been incorporated in the original text. This consolidated version is of documentary value only.

Contents

1.

Summary of Legislation

2.

Legislative text