Belgium, (Brussels Morning Newspaper) The European Commission and the European Investment Bank (EIB) have signed InvestEU agreements as part of the bloc’s stimulus package.
The package aims to help EU member states recover from the coronavirus crisis. The EC describes the InvestEU programme as a vital pillar in the bloc’s “largest ever stimulus package to recover from the COVID-19 pandemic and help build a greener, more digital and more resilient European economy.”
The package can help the economy address the latest challenges in a time of uncertainty by providing EU budgetary guarantees of 26.2 billion euro intended to “attract public and private financing …to mobilise at least 372 billion euro in additional investment by 2027.” Achieving this would benefit businesses and citizens.
“Beyond securing significant investment volumes, it will focus on enabling the financing of investments that provide the highest impact for the target policy objectives”, according to the Commission.
The EIB and the European Investment Fund, the arm for financing small and medium-sized enterprises (SMEs), are the main implementing partners and will be responsible for 75% of the budget guarantee — 19.65 billion euro.
“International financial institutions active in Europe and national promotional banks will be able to use a share of the guarantee (25% in total) to support investment and projects schemes”, the EC noted
Initial guarantees for InvestEU projects are expected as early as next month.
The guarantee agreement sets the rules “for granting the EU budget guarantee as well as for its implementation by the EIB and the EIF”, the Commission said, pointed out that “at least 30% of all the investments will be made in areas directly supporting Europe’s green transition.”
The EC and the EIB also signed an agreement to provide strategic, financial and technical support to national and regional authorities, project promoters and financial intermediaries.
The European Commissioner for Trade, Valdis Dombrovskis, declared that the “InvestEU will spur vital large-scale private sector investment to help build and support the businesses and jobs of the future.”
European Commissioner for Economy, Paolo Gentiloni, called it the opening of a new chapter “in the story of the EC’s successful partnership with the EIB Group: to build sustainable infrastructure, drive innovation, develop future-oriented skills and nurture the growth of SMEs.”