The EU's Investment Plan, initiated in June 2015, aims to stimulate economic growth and investment through the European Fund for Strategic Investments (EFSI), targeting areas like infrastructure and innovation. The plan focuses on mobilizing private sector funds, providing technical assistance, and creating a conducive investment environment via regulatory improvements and a Project Portal. It emphasizes collaboration between the European Investment Bank and national banks to support strategic projects, with a notable goal of leveraging substantial funding for SMEs and other long-term investments.

1. The Investment Plan
for Europe
European Fund for
Strategic Investment
(EFSI)
June 2015

2. 1
 EU growth benefitting from economic tailwinds
 Low oil, low Euro, QE , broadly neutral fiscal stance
 Boost for an otherwise mild cyclical upswing
 GDP expected +1.8% in 2015; +2.1% in 2016
 Labour markets are slowly improving but unemployment
remains high in certain countries
 Inflation expected to recover later this year
 Medium-term outlook still affected by structural and
crisis-related weaknesses
EU Economic context

3. 2
• Six months into a new five year mandate
• New Commission led by President Juncker
• New focus, new structures
EU Political context

4. 3
EU Investment Plan: rationale
EU investment & competitiveness gap
High liquidity in the market
Public budget constraints
Financial and non-financial barriers to
investment
EU Investment Plan
EU/MS policy action + EU budget +
EIB capacity to mobilise private
sector funds towards strategic
investments.

5. 4
The challenge of boosting investment
3,039
2,527
2,543
2,528
2,567
2,640
2,717
3,021
2,657
2,714
2,659 2,647
230
370
Gap compared
to sustainable trend
2,869
"Sustainable" trend of
investment assuming a
share in GDP of 21-22%
2,416
2,606

6. 5
EU Investment Plan: estimated impact

7. 6
 Boost investment in strategic projects and
access to finance via the European Fund for
Strategic Investment (EFSI) – EIB/EIF
 Cooperation with National Promotional Banks
and the EIB
1. MOBILISING FINANCE FOR INVESTMENT
 Investment Project Portal
 European Investment Advisory Hub:
technical assistance
2. MAKING FINANCE REACH THE REAL
ECONOMY
 Predictability and quality of regulation
 Removing non-financial, regulatory barriers
in key sectors within EU Single Market
 Structural reforms at national level
3. IMPROVED INVESTMENT ENVIRONMENT
EU Investment Plan: 3 pillars

8. 7
Better and more predictable regulation at all levels
Capital Markets Union
Making most of the Single Market
Energy Union
Digital Single Market
Services Market
Better implementation and enforcement
Structural reforms in the Member States
Openness to international trade and investment
3. Improved investment environment

9. 8
Building a dynamic pipeline of viable projects
 European Investment Project Portal
 Matching investment opportunities proposed by project
sponsors with investors' interest
Strengthening advisory services
 European Investment Advisory Hub (EIAH) – EC/EIB/MS
 Technical assistance
 Pooling resources & expertise
2. Making finance reach the real economy

10. 9
2a. European Investment Project Portal
• Bridge between EU's investment opportunities and
potential investors.
• A web portal enables EU-based project promoters (public
authorities, private, PPP) to share their investment
proposals seeking external financing, in a transparent
way.
• Investors can search for opportunities across Europe
(size, sector, geography).
• Effective form of presenting new project ideas to the
market (G20/ OECD experience).

11. 10
2b. European Investment Advisory Hub
• A single access point to a wide range of advisory services.
• Strengthened advisory support throughout the project cycle:
project identification, preparation and implementation incl. the use of
financial instruments, advice on structuring and implementing public-
private partnerships and facilitation of access to finance.
• A cooperation platform – a peer-to-peer exchange and sharing of
know-how regarding advisory services.
The Hub: a gateway to
• Targeted advisory support for project development.
• Technical capacity building.
• Expert guidance from experienced financial & technical professionals.
• Information and knowledge sharing
The Hub seeks to improve project quality and be the reference
point for project advisory support in Europe.

12. 11
1. European Fund for Strategic Investment
(EFSI)
EU
guarantee
€ 16bn
Infrastructure &
Innovation window
Long-term investments
 € 240 bn
SMEs and mid-cap firms
 € 75 bn
SME window
EFSI
€ 21 bn
Total over 3 years:
 € 315 bn
EIB financing EIF financing
€ 5bn

13. 12
Infrastructure and Innovation window
SOURCES
OF FUNDING
TYPICAL PRODUCTS
OFFERED
FINAL RECIPIENTS AND
TYPICAL PROJECTS
Long-term senior
debt for higher
risk projects
Equity and
quasi-equity
Subordinated loans
Other
investors
join in on
a project
basis
Transport
infra
Energy
infraBroadband
infra
Energy
Resource
efficiency
Renewable
energyResearch
Education
Innovation
SMEs
Long-term
investment
funds
The Fund
serves as
credit
protection
for new EIB
activities
European Fund
for Strategic
Investments

14. 13
SMEs and mid-cap window
SOURCES
OF FUNDING
TYPICAL PRODUCTS
OFFERED
Guarantees
European Fund
for Strategic
Investments
FINAL RECIPIENTS AND
PROJECT EXAMPLES
SME
e.g.
micro-
loans to
a SME
Venture Capital
Growth finance
Securitisation
Mid-cap
company
e.g. equity
in a
start-up
e.g. loans
for R&D
project
e.g.
venture
capital for
a
prototype
The Fund
serves as
credit
protection
for new EIF
activities
Other
investors
join in on
a project
basis

15. 14
Key features of EFSI /1
• Focus on investments in real economy
• Results on growth and jobs
• Market-driven, no political interference
• No geographic or sector pre-allocation
• Support to EU policies
• Leverage / crowd-in private sector and third parties
• Economic and technical viability
• Additionality vs existing instruments
• Higher risk-taking than EIB normal activity in EFSI
timeframe

16. 15
Key features of EFSI /2
• Size of investments
• EIB uses min €25m for individual loans
• Smaller schemes can be grouped into framework
loans
• No size restriction for operations via Fin.
Intermediaries (eg for SMEs)
• Cross-border
• Investments between a partner in MS and extending
to countries in PreAccession and Neighbourhood can
be covered by EFSI

17. 16
Opportunities for promoters/investors
Projects
• Cofinancing / Risk-sharing with EIB/EIF
Investment Platforms
• Pooling of projects with thematic or geographic focus
• Agreement or Fund
• Can benefit from EU Guarantee via EIB
• Cooperation with EU National Promotional Banks

18. 17
EFSI project cycle
• Project promoters present proposal to EIB/EIF directly
• EIB/EIF due diligence
• EFSI Investment Committee approval of EU guarantee
• EIB/EIF Board approval
• Signature
• Financing
• Implementation and monitoring

19. 18
EFSI project cycle
• Project promoters present proposal to EIB/EIF directly
• EIB/EIF due diligence
• EFSI Investment Committee approval of EU guarantee
• EIB/EIF Board approval
• Signature
• Financing
• Implementation and monitoring

20. 19
EFSI Governance
• EFSI Investment Committee (8 independent experts)
• Decisions on use of EU guarantee for each operation
based on Investment guidelines
• EFSI Steering Board (EC/EIB)
• Strategic orientation
• Policy setting
• EFSI Managing Director
• Daily management

21. 20
• Bioscience R&D (Spain) € 240m
• Primary care PPP (Ireland) €140m
• Airport expansion (Croatia) € 246m
• Industry modernisation (Italy) € 227m
• Renewable energy (Denmark) € 2bn
• Energy efficiency in buildings (France) € 800m
• Gas transmission (Spain) € 326m
• Pulp production upgrade (Finland) € 1.2bn
EIB started approvals since Apr-2015

22. 21
• Bioscience R&D (Spain) € 240m
• Primary care PPP (Ireland) €140m
• Airport expansion (Croatia) € 246m
• Finance for SMEs (France, Portugal, UK, Luxembourg,
Italy and Germany) € 1 300m
• Industry modernisation (Italy) € 227m
• Renewable energy (Denmark) € 2bn
• Energy efficiency in buildings (France) € 800m
• Gas transmission (Spain) € 326m
• Pulp production upgrade (Finland) € 1.2bn
EIB Group started approvals since Apr-
2015

23. 22
Status and next steps
Status
• EFSI regulation approved by June.
• 10 projects have already received EIB pre-financing.
• EIAH operational by June.
Next steps
• Project can be submitted to EIB/EIF for EFSI financing.
• EFSI operational by Sep 2015.
• European Investment Project Portal operational by end
2015.

24. Thank you for your attention – more information available at:
http://ec.europa.eu/priorities/jobs-growth-
investment/plan/index_en.htm
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