Today we are delivering.
Just 2 months after the Juncker Commission launched its investment plan, we are putting the concrete legal texts on the table with all necessary details.
The Commission is delivering fast as we need robust growth and to get more people back to work.
We are providing this clarity first and foremost to the citizens, but Member States, public authorities and private investors have now legal clarity to make their investment decisions.
We need Member States and the European Parliament to fast-track these legal texts so they can be approved by June and investment can flow into the real economy.
Since we are moving fast it is very important that we take the time to explain what we are doing in great detail.
SO WHAT IS NEW?
We have set out detailed plans for:
1. The establishment of the new European Fund for Strategic Investment (EFSI)-the key vehicle to mobilise risk-financing of more than 315 billion EURO over the next 3 years.
EFSI must support projects with a higher risk profile to get investment flowing into countries and sectors where job creation and growth is most needed.
We are providing clarity on how EFSI will be managed, the origin of the funds for EFSI, and the process ahead for the selection of quality projects.
The governance structure has been designed so as to ensure that the activity of EFSI will provide value-added compared to the one of the EIB. Most importantly, it will be less risk adverse than the traditional EIB, providing junior financial instruments like equity.
Member States can understand now better the governance structure should they wish to participate in EFSI:
– a Steering board will define the investment guidelines and the risk profile of EFSI. The steering board will be made up of those institutions providing capital to EFSI.
– an Investment Committee made up of six independent professionals will make the independent investment decisions in accordance with the investment guidelines.
2. We have set out the details for the creation of a transparent project pipeline. We need to ensure there are well-structured, reliable and viable infrastructure projects, so it is easier for private money to come in.
3.We also set out the plans for stepping-up our technical assistance for investors and project developers, with a European Investment Advisory Hub (EIAH)- a one-stop-shop for technical advice and support..
4. Finally, we have provided clarity on “Stability and Growth Pact Neutrality.”
If Member States decide to contribute to the EFSI or to investment platforms alongside the EFSI, the Commission will take a favourable position towards such contributions in assessing that state’s public finances.
WHAT HAPPENS NEXT?
Our timetable is very ambitious.
We want to have these proposals adopted by June so the new EFSI Fund and project pipeline can be operational by the end of the Summer. We want to get the investments flowing as soon as possible.
This EU Investment Plan is not a one of stimulus measure. It is a structural plan- or structural reform. It must be complemented by a series of important Single Market measures.
The Investment Plan will not solve all our economic problems. It will not change the whole world. But if implemented efficiently, it will change Europe in a very permanent and positive direction.
And it will stimulate the economy and job creation.