InvestEU Fund agreed: Boosting strategic, sustainable and innovative investments
On Monday evening, EP and Council negotiators struck a deal on the new InvestEU programme, which supports investments and guarantees simplified access to financing.
InvestEU will foster strategic, sustainable and innovative investments and address market failures, sub-optimal investments and the investment gap in targeted sectors, for the period 2021-27.
Support for companies and strategic investments
Recognising that many companies are at risk of insolvency due to the COVID-19 crisis, EP negotiators from the Budgetary and Economic and Monetary Affairs committees insisted that capital support be provided to SMEs that have been negatively affected by the crisis.
They were also able to ensure that strategic investments will be made in manufacturing of pharmaceuticals, medical devices and supplies - crucial in the midst of a pandemic - as well as the production of Information and Communication Technology, components and devices in the EU. InvestEU will therefore be able to build on the support provided by its predecessor, the European Fund for Strategic Investments, for the BioNTech and Curevac coronavirus vaccines.
Support for sustainable investments
Negotiators agreed that InvestEU support should finance sustainable projects that can prove their positive environmental, climate and social impact. Investment projects should also be subject to the principle of “do no significant harm”, meaning they must not negatively affect the EU’s environmental and social objectives .
Additionally, MEPs made sure that InvestEU contributes to achieving the target of spending at least 30% of the EU funds on climate objectives until 2027.
Additional investments of around €400 billion
The EU guarantee of around €26 billion (current prices) is expected to mobilise €400 billion in additional investment across the European Union and will be allotted to the following policy objectives:
- Sustainable infrastructure: 37,8% (around €9,9 billion);
- Research, Innovation and Digitalisation: 25,1% (around € 6,6 billion);
- SMEs: 26,4% (around € 6,9 billion)
- Social investment and Skills: 10,6% (around € 2,8 billion).
Moreover, the European investment Fund (EIF), which will contribute to the implementation of the InvestEU programme, will get an additional €375 million.
Latest News from
Presentation by Commissioner Hahn of the NextGenerationEU – Funding strategy to finance the Recovery Plan for Europe16/04/2021 15:20:00
Presentation given recently (14 April 2021) by Commissioner Hahn of the NextGenerationEU – Funding strategy to finance the Recovery Plan for Europe.
COVID-19: Council agrees its negotiating mandate on the Digital Green Certificate16/04/2021 14:05:00
EU ambassadors recently (14 April 2021) agreed a mandate for negotiations with the European Parliament on the proposal for a Digital Green Certificate.
Statement by President von der Leyen on developments in the Vaccines Strategy16/04/2021 13:15:00
Statement given recently (14 April 2021) by President von der Leyen on developments in the Vaccines Strategy.
"The state of the world order and the importance of the India-EU relationship" - Address by President Charles Michel at the Raisina Dialogue 202116/04/2021 11:05:00
Address given recently (14 April 2021) by President Charles Michel at the Raisina Dialogue 2021.
Retail Clients Continue to Lose Out Due to High Investment Products Costs15/04/2021 14:10:00
The European Securities and Markets Authority (ESMA), the EU securities regulator, yesterday published its third annual statistical report on the cost and performance of European Union (EU) retail investment products.
ESMA Publishes Annual Peer Review of EU CCP Supervision09/04/2021 11:10:00
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, yesterday published its annual peer review report on the supervision of EU Central Counterparties (CCPs) by National Competent Authorities (NCAs).
ESMA Report Highlights Liquidity Concerns For Alternative Investment Funds08/04/2021 15:20:00
The European Securities and Markets Authority (ESMA), the EU securities regulator, today publishes its third annual statistical report on the Alternative Investment Fund (AIF) sector.
ESMA Publishes Draft Regulatory Technical Standards on Changes to CCPS’ Activities And Models08/04/2021 13:25:00
The European Securities and Markets Authority, the EU’s securities markets regulator, today published its Final Report containing draft regulatory technical standards (RTS) relating to changes to central counterparty (CCP) services and activities, as well as models and parameters under the European Markets Infrastructure Regulation (EMIR).
Joint Statement by Commissioner Reynders and Yoon Jong In, Chairperson of the Personal Information Protection Commission of the Republic of Korea30/03/2021 15:25:00
In their call today, Commissioner for Justice Didier Reynders and Chairperson of the Personal Information Protection Commission Yoon Jong In welcomed the successful conclusion of the adequacy talks between the European Union and the Republic of Korea.