Investment Plan for Europe (2015-2020)
The Investment Plan for Europe is a package of measures to unlock public and private investments in the real economy of at least € 315 billion over the period ranging from 2015 to 2017.
The amazing fact is that during 2015 it worked so well that in 2016 the European Commission and the European Investment Bank decided to expand the Plan to 2020 with the objective to increase the amount to unlock and take it to at least € 500 billion.
The Investment Plan consists of three pillars:
Mobilising the € 500 billion additional finance for investment at EU level
It is a joint effort between the European Commission and the European Investment Bank (EIB). Member States, National Promotional Banks, regional authorities and private investors are also contributing.
The European Fund for Strategic Investments (EFSI) is the initiative to face the first pillar.
EFSI has a different risk profile, provides additional sources of financing and targets projects delivering greater societal and economic value beyond the projects currently financed through the EIB or existing EU programmes (e.g. Horizon 2020).
What is the 1:15 Multiplier?
The calculation is the results of a prudent average, which is well know by EIB.
for each protected European € 1
€ 3 could be provided by sub-ordinated debt, and for each € 1 of sub-ordinated debt
This created a “safety buffer” which leads to
This means that € 1 of protection by the fund generates € 15 of private investment in the real economy, that would not have happened otherwise.
Tell us what do you think about it!
You must be logged in to post a comment