Council and Parliament reach deal on EFSI <

Thursday 28 May 2015 / Gerelateerde tags: Infrastructure CEF EFSI 

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The European Fund for Strategic Investments (EFSI) will be established in Summer under the European Investment Bank by an agreement between the European Commission and the Bank. EFSI will support projects in the field of transport, energy and telecommunications, education, health, research and risk finance for SMEs for a period of 3 years. It will complement and be additional to ongoing EU programmes and traditional EIB activities.

The fund will be built on €16 billion in guarantees from the EU budget and €5 billion from the EIB. To facilitate the payment of potential guarantee calls, a guarantee fund will be established so as to gradually reach €8 billion (i.e. 50% of total EU guarantee obligations) by 2020.

EU funding will come from redeploying grants from the Connecting Europe facility (CEF covering transport, energy and digital networks) and the Horizon 2020 (research and innovation programme), as well as unused margins in the EU's annual budget. As there was lots of criticism about cutting in transport, energy, telecom and innovation, the Council presidency and the European Parliament agreed to increase the share of financing coming from unused margins, in comparison with what the Commission proposed, in order to reduce contributions from Horizon 2020 and Connecting Europe facility (CEF).

The agreement reached on funding is as follows:

  • Redeployment will amount to €5bn, of which €2.8bn from CEF and €2.2bn from Horizon 2020;
  • Funding from unused margins will amount to €3bn over the period 2016-2020. The source of this financing includes €543 million and €457 million specifically earmarked from the global margin for commitments for the 2014 and 2015 budgets respectively.
  • Extension of payments until 2023 to provision the EFSI guarantee fund.

Furthermore, it was agreed that €500 million of CEF-transport financial instruments will be redeployed for CEF-transport grants.

The agreement still has to be confirmed by the Council once the full text of the regulation is finalised at technical level. The regulation will then be submitted to the European Parliament for a vote at first reading, and to the Council for final adoption which is expected in June.

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