COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK An Investment Plan for Europe
Date: 2014-11-26
Institutions: European Commission
Subjects: EU budget, EU programme, economic growth, economic recession, fund (EU), job creation, private investment, public investment













EUR-Lex - 52014DC0903 - EN











|



52014DC0903

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK An Investment Plan for Europe /* COM/2014/0903 final */









COMMUNICATION FROM THE COMMISSION TO
THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN
ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN
INVESTMENT BANK
An Investment Plan for Europe

"My first priority as Commission President will be to
strengthen Europe's competitiveness and to stimulate investment for the purpose
of job creation."
"We need smarter investment, more focus, less regulation and
more flexibility when it comes to the use of public funds [available at EU
level]."
"This should allow us to mobilise up to EUR 300 billion in
additional public and private investment in the real economy over the next
three years."
"The focus of this additional investment should be in the areas
of infrastructure, notably broadband and energy networks, as well as transport
infrastructure in industrial centres; education, research and innovation; and
renewable energy and energy efficiency. 
A significant amount should be channelled towards projects that can help the
younger generation back to work."
(Political
Guidelines of Jean-Claude Juncker, President of the European Commission,
presented in the European Parliament on 15 July 2014)
1.   
An Investment Plan for Europe
Europe urgently needs an Investment Plan. As a consequence of the economic
and financial crisis, the level of investment in the EU has dropped significantly
since its peak in 2007, 
by about 15%.[1]
This level is also well below its historical trend. Only a partial rebound is
projected over the coming years. Economic recovery, job creation, long-term
growth and competitiveness are being hampered as a result.
There is no
simple or single answer. General uncertainty about the economic situation, high
levels of public and private debt in parts of the EU economy and their impact
on credit risk limit our room for manoeuvre. However, at the same time, there
are significant levels of savings and – in contrast to some years ago – high
levels of financial liquidity that can be mobilised. Moreover, Europe has plenty of investment needs and economically viable projects in search of funding.
The challenge is to put savings and financial liquidity to productive use in
order to support sustainable jobs and growth in Europe.
Action is
required on several fronts at the same time, addressing both the supply and
demand sides of the economy.[2]
What we need is confidence in the overall economic environment; predictability
and clarity in policy-making and the regulatory framework; effective use of
scarce public resources; trust in the economic potential of investment projects
under development; and sufficient risk-bearing capacity to encourage project
promoters, unlock investment and entice private investors. These issues need to
be tackled by public authorities at all levels.
Member States, as
well as regional authorities, have a clear role to play in pursuing the
necessary structural reforms, exercising fiscal responsibility, providing
regulatory certainty and boosting investment in support of jobs and growth.
Member States with fiscal room for manoeuvre should invest more. Member States
with more limited fiscal space should prioritise investment and growth-related
expenditure in their budgets, make better use of EU Funds and create an
environment that is more conducive to investment by private actors. 
A lot can be achieved at national and regional level. The Commission, together
with the other Institutions and Member States, will steer and monitor progress in
the context of the European Semester of economic policy coordination.
This Investment Plan
will complement these efforts. It will be based on three mutually reinforcing strands.
First, the mobilisation of at least EUR 315 billion in additional investment over
the next three years, maximising the impact of public resources and unlocking
private investment. Second, targeted initiatives to make sure that this extra investment
meets 
the needs of the real economy. And third, measures to provide greater
regulatory predictability and to remove barriers to investment, making Europe more attractive and thereby multiplying the impact of the Plan.
For the first
two strands, the Investment Plan for Europe is being launched jointly by the
Commission and the European Investment Bank (EIB), as strategic partners, with
the clear aim of rallying stakeholders at all levels. For the third strand, the
Commission will propose action in its upcoming Work Programme, as well as together
with the other EU Institutions and the Member States in the context of the
European Semester.
Graph 1.
An Investment Plan for Europe
The impact of
the Plan will multiply as more stakeholders join in: Member States, National
Promotional Banks (NPBs), regional authorities and private investors. All have
a necessary role to play. The Commission is particularly welcoming of the
momentum building up around the Plan, as evidenced by the positive
announcements made at European and global level in support of the Plan over the
last weeks[3].

Between now and end
2017, the ambition is to mobilise at least EUR 315 billion in additional public
and private investment into the real economy. The Investment Plan comes on top
of existing measures and will make the most of every public euro mobilised through both new and existing instruments. By
acting swiftly, on each aspect of the Plan, we can achieve collectively much
more than we would by acting in an uncoordinated way and harness even more than
the EUR 315 billion.
Ultimately, the
Plan will serve three related policy objectives: 
§ 
reverse downward investment trends and help boost
job creation and economic recovery, without weighing on national public
finances or creating new debt; 
§ 
take a decisive step towards meeting the
long-term needs of our economy and increase our competitiveness; 
§ 
strengthen the European dimension of our human capital,
productive capacity, knowledge and physical infrastructure, with a special
focus on the interconnections vital to our Single Market.
We have to move
fast to ensure rapid results that can be sustained over time. The European
Parliament will be closely involved in the deployment of the Investment Plan
and 
the European Council is invited to endorse the overall approach, at its meeting
of 
18-19 December 2014.
The Commission
and the EIB will engage with stakeholders at all levels in early 2015. Rigorous
follow-up will ensure that the public risk-bearing capacity is well deployed and
managed soundly and that targeted projects trigger job creation, economic
growth and increases Europe's competitiveness.
2.   
Mobilising at least EUR 315 billion additional
investments at EU level
The first strand
of the Plan is the mobilisation of at least EUR 315 bn of additional investment
over the next three years. What is presented here is based on action solely at
the EU level: 
the Commission calls on Member States and other economic actors to join in and complement
this initiative. In order to ensure a fast delivery, the proposed action can be
financed within the current Multi-Annual Financial Framework for the EU budget for
2014-2020. 
For this to
happen, parts of the EU budget should be used differently, at both EU and
national level. The main idea is to provide greater risk-bearing capacity
through public money in order to encourage project promoters and attract
private finance to viable investment projects which would not have happened otherwise.
This will make the best use of EU public resources.
At EU level,
this will be done by establishing a new European Fund for Strategic Investments
to provide risk support for long-term investments and ensure increased access
to risk-financing for SMEs and mid-cap companies[4].
At national level, a more strategic use of the European Structural and
Investment Funds can make a significant difference. 
The
European Council is invited to endorse the
setting up of the European Fund for Strategic Investments, and commit to a more
effective use of the European Structural and Investment Funds, notably through
an overall doubling of the use of financial instruments. The legal
proposal[5]
necessary for the European Fund for Strategic Investments should be dealt with
in fast-track procedure by the European Parliament and the Council, as the EU legislator,
to be in force by June 2015.
2.1. A new
European Fund for Strategic Investments
A new European Fund
for Strategic Investments (EFSI) will be set up in partnership between the
Commission and the EIB in order to benefit from the well-established expertise of
the EIB and its proven ability to deliver (see Graph 2). The Fund will be set
up within the EIB-Group.[6]
Compared to
existing structures, the Fund will have a different risk profile, provide
additional sources of risk-bearing capacity and will target projects delivering
higher societal and economic value, complementing the projects currently
financed through the EIB or existing EU programmes. The range of possible products
will be open-ended in order to adapt to evolving market needs.
To establish the
European Fund for Strategic Investments, a guarantee, of EUR 16 bn, will be
created under the EU budget to support the Fund. The EIB will commit EUR 5 bn.
The Fund will thus start with significant firepower but it will also be able to
expand its activities further over time. Member States, directly or through
their NPBs or similar bodies, will have the opportunity to contribute to the
Fund in the form of capital. Importantly, in the context of the assessment of
public finances under the Stability and Growth Pact, the Commission will take a
favourable position towards such capital contributions to the Fund. Private
investors can also join at the level of the Fund.
Graph 2.
The new European Fund for Strategic Investments – initial construction (EU
alone)
The EU guarantee
will be backed by existing EU funds from the margin of flexibility which exists
within the EU budget, the Connecting Europe Facility and the Horizon 2020
programme. Thanks to the new Fund, the impact of these existing EU funds on the
real economy will be multiplied, compared to what they would have achieved
otherwise. All interventions by the European Fund for Strategic Investments will
be covered by established state-aid clearance procedures[7]. 
The role of the
Fund is to ensure enhanced risk-bearing capacity and mobilise extra investment,
essentially from private sources, but also public sources, in specific sectors
and areas. These areas are described below.
We estimate that
the Fund could reach an overall multiplier effect of 1:15 in real investment in
the economy. This is because the Fund will offer an initial risk bearing
capacity that will allow it to provide extra financing and attract more
investors to join, as indicated in Graph 3. This means that one euro of risk
protection by the Fund can generate, on average, 15 euro of investment in the
real economy that would not have happened otherwise. This 1:15 multiplier
effect is a prudent average, based on historical experience from EU programmes
and the EIB. The final multiplier effect will naturally depend on the mix of
activities and the specific features of each project.
Graph 3.
The multiplier effect of the Fund (averaged based on experience)
As a reference,
the capital increase of the EIB in 2012 had an estimated multiplier effect of
1:18 and is materialising as foreseen. Likewise, under the current Loan
Guarantee Facility for SMEs under the COSME programme, every EUR 1 bn of
funding results in at least 
EUR 20 bn capital for SMEs, the equivalent of a multiplier effect of 1:20.
The Fund will have
its own governance structure. It will be managed in accordance with agreed investment
guidelines. Its management body will ensure that the investment guidelines are
adhered to and that the priorities and activities of the Fund reflect these
guidelines. Concrete projects will be validated by an independent Investment Committee
based on their viability and making sure that public support does not exclude
or crowd out private investment. Project promoters and investors will be able
to rely on the professional advice, experience and support of the EIB-Group.
The EIB-Group will also contribute with dedicated staff in areas such as
product development, pipeline origination and structuring, technical
assistance, funding capacity, treasury management, asset-liability management,
guarantees, portfolio management, accounting and reporting. 
Overall, if the
Fund is set up rapidly with an initial contribution of EUR 21 bn at EU level, 
it has the potential to yield approximately EUR 315 bn of additional finance over
three years. The impact will obviously be higher as Member States and National
Promotional Banks join.
2.2. The
new Fund will support long-term investment projects
The European Fund
for Strategic Investments will support strategic investments of European
significance in infrastructure, notably broadband and energy networks,
as well as transport infrastructure, particularly in industrial centres; education,
research and innovation; and renewable energy and energy efficiency. There
should be no thematic or geographic pre-allocations, in order to guarantee that
projects are chosen on their merits and maximise the added value of the Fund.
The Fund will be flexible since different regions have different needs in order
to jump-start investments.
The activities
of the Fund in these fields will be complementary to the more traditional scope
of EIB activities and to ongoing EU programmes such as the Connecting Europe
Facility 
(for infrastructure investment) and Horizon 2020 (for innovation and R&D).
Typically, 
the European Fund for Strategic Investments will provide greater risk coverage of
the different projects, thus considerably facilitating private investment in
safer tranches of the projects. It should be noted that, while the European Fund
for Strategic Investments is being set up, important sources of funding exist
in already approved work programmes under the Connecting Europe Facility and
Horizon 2020 and will become available in 2015 for funding of projects. 
In addition, the
EIB-Group will start activities using its own resources as of early 2015,
hereby giving the Plan a flying start.
Among the areas
of interventions being considered, the European Fund for Strategic Investments should
have the possibility to finance not only individual projects but also support
private fund structures such as European Long-Term Investment Funds (ELTIF)[8], set up by private
investors and/or NPBs. This will create an additional multiplier effect and
maximise the impact on the ground.
As suggested in Graph
2, it is envisaged to use three quarters of the resources of the European Fund
for Strategic Investments for these kinds of activities (leading to investments
of approximately EUR 240 bn).
2.3. The new
Fund will also support investment by SMEs and mid-cap companies
In addition, the European Fund for Strategic Investments will
support risk finance for SMEs and mid-cap companies across Europe, relying on
the European Investment Fund (EIF, part of the EIB-Group) for the operational
implementation.[9]
This should help them overcome capital shortages by providing higher amounts of
direct equity, as well as additional guarantees for high-quality securitisation
of SME loans. This is an effective way to kick-start job creation and growth, including
the recruitment of young people. 
The EIF is highly experienced in these kinds of activities. The European
Fund for Strategic Investments should thus serve to scale up the activities of
the EIF and, in doing so, create new channels for NPBs to develop their own activities
in this area. This will come on top of existing activities for SMEs initiated by
programmes such as COSME and Horizon 2020, which will notably already provide
significant sources of funding in 2015.
As suggested in
Graph 2, one quarter of the European Fund for Strategic Investments resources will
be used for these kinds of activities (leading to investments of approximately EUR
75 bn).
2.4. In
addition to the EUR 315 bn mobilised by the European Fund for Strategic
Investments, the impact of the European Structural and Investment Funds can be
boosted further
From 2014 to
2020, EUR 450 bn (EUR 630 bn including national co-financing) will become
available for investment as part of the European Structural and Investment
Funds. It is essential that Member States and regional authorities get the
maximum impact from EU funds by focusing on key areas and capitalising on every
euro invested.
A particularly
effective way to increase the impact of the Funds is to use financial
instruments in the form of loans, equity and guarantees, instead of traditional
grants. These instruments are relatively new to many public authorities, but
they have a great potential and proven ability to deliver where they exist. In
the context of this Plan, Member States should commit to increase significantly
their use of innovative financial instruments in key investment areas
such as SME-support, energy efficiency, Information and Communication
Technology, transport and R&D support. This would achieve at least an
overall doubling in the use of financial instruments under the European Structural
and Investment Funds for the programming period from 2014 to 2020.[10]
The funds made
available by these instruments, combined with resources catalysed from other
investors and beneficiaries, will result in additional investments in the
economy, through the multiplier effect. The final multiplier effect in the
economy will depend on the actual projects and instruments used. In addition to
the recent SME-Initiative[11],
additional EU-level financial instruments as well as readily available, so-called
off-the-shelf instruments, may be deployed in order to facilitate the use of
financial instruments by the managing authorities. The Commission will discuss
with each Member State the practical steps to be taken and provide guidance to
this end. A dedicated monitoring system will be put in place to track results.
Over the whole
programming period, 2014 to 2020, this new approach would result in close to
EUR 30 bn committed to innovative financial instruments with a direct leverage
effect generating additional investments between EUR 40 and 70 bn and with an
even larger multiplier effect in the real economy. A conservative estimate of
this additional investment that could be mobilised in the period 2015-2017
would be EUR 20 bn. 
In addition to
this, Member States and regions can also increase the multiplier effect of EU
funds by increasing national co-financing beyond the minimum legal requirement.
As national public funds are limited, private funds could be the source of this
increase, which is already the case in certain Member States.[12] 
Third, Member
States are invited to use EU funds still available under the 2007-2013
programming period to best effect and ensure that they are fully used in
support of this Investment Plan. The Commission will assist with support and
guidance to this end.
Finally, since
the EIB will deploy new lending in parallel to the implementation of the
Investment Plan, Member States are also encouraged to work with the EIB to leverage
existing national resources.
3.   
Making investment finance reach the
real economy
The second strand
of the Plan is to take targeted initiatives to make sure that the extra
investment finance generated meets the needs of the real economy. This means channelling
extra public and private money to viable projects with a real added value for
the European social market economy. This holds true for the new European Fund
for Strategic Investments and the European Structural and Investment Funds, but
this is a broader challenge for Europe as a whole.
The main purpose
of this strand is to bring about a fundamentally new approach to the
identification and preparation of investment projects across Europe, by
improving the way in which private investors and public authorities approach
and access information on investment projects. This is closely linked to, but
goes well beyond, the issue of identifying EUR 300 bn worth of projects that
could potentially benefit from the additional sources of funding discussed in
the first strand of this Plan.
The
European Council is invited to endorse the proposal to set up a pipeline of
projects 
at EU level and to strengthen technical assistance through an investment
advisory "Hub", 
to be in place by June 2015.
3.1. A
pipeline of projects will be established at
EU level
For a number of
stakeholders, the main concern is not a lack of finance, but a perceived absence
of viable projects. However, as the initial work of the "Investment Task
Force" (jointly being carried out by the EIB and the Commission, together
with the Member States, expected to publish its Report before the end of the
year), suggests, there is a significant number of potentially viable projects
that are ripe for investment at EU level. That said, private investors are
often unaware of the potential of these projects and are reluctant to invest
alone given their intrinsically complex nature and lack of information to
properly evaluate risk. This is notably the case for large-scale, long-term
investment projects in infrastructure.
For investment
to happen, there is a strong need for independent and transparent assessments
that can confirm whether a project is economically viable and in particular whether
it satisfies all relevant regulatory and administrative requirements. Greater
transparency and understanding of the risks will help to attract and unlock
private investment.
Together with
the Member States, the "Investment Task Force" is carrying out a
first screening exercise of potentially viable projects with European
significance. The Commission considers that this work should continue on a more
permanent basis at EU level, to help identify and unlock key investment
projects of European significance, as well as to inform investors on a regular
basis of the state of preparedness of the various projects. NPBs could usefully
contribute to this work.
In this context,
a pipeline of investable projects of European significance could be established.[13] The list of projects would
be dynamic and based on a number of simple and recognised economic criteria. Projects
would be continuously added and removed over time. This does not mean that
every project in the European pipeline should or will be financed under the
Plan or through the new Fund, but it will allow public and private investors to
access relevant and transparent information. The list of assessed and
non-assessed projects should be made publicly available on a website, which in
turn could be connected to similar lists at national and regional level.
Over time, this
work could lead to a system of European certification for viable investment
projects that fulfil certain criteria. Such certification could subsequently be
used by the EIB and NPBs to attract private investors. This would be useful in
order to provide a clear "credibility label" for European investment
projects. This is also in line with the efforts at global level in the context
of the G20 to share best practices for investment projects.
3.2. A single-entry
investment advisory "Hub" will be set up to bring together sources of
expertise and strengthen technical assistance at all levels
Many projects
and project promoters in Europe are still looking for the most appropriate sources
of funding, adapted to their needs. There is also often a need of guidance on
how to meet regulatory requirements. A priority of the Investment Plan will be
to provide strengthened support for project development across the EU, by
building on the expertise of the Commission, the EIB, NPBs and the managing
authorities of the European Structural and Investment Funds.
This notably includes
technical assistance for project structuring, the use of innovative financial
instruments at national and European level, and the use of public-
private partnerships. To this end, a one-stop-shop will be established for all questions
regarding technical assistance. This will take the form of an investment
advisory "Hub" with 
three audiences in mind: project promoters, investors and public managing
authorities. 
The Hub will provide guidance on the most appropriate advisory support for a
specific investor, whether it is delivered by the EIB-Group, NPBs or other international
financial institutions.
This new Hub will
build on successful, already available instruments such as the JASPERS
programme, which will be upgraded and expanded, and the new advisory platform
for the use of innovative financial instruments (Fi-Compass). It will be
developed by the EIB-Group in close cooperation with the NPBs and similar
entities across Europe and allow these entities to increasingly work together
in a network.
3.3. Engaging
with stakeholders at European, national and regional level
With the support
of national and regional authorities, the Commission and the EIB will engage
with investors, project promoters and institutional stakeholders to facilitate
key investment projects and make sure the right projects access appropriate sources
of funding. "Investing in Europe" workshops will also be organised at
national, transnational and regional level to address specific challenges
jointly with the EIB. The focus will be on attracting private and public
project promoters, as well as private investors, raising awareness about EU
financial instruments, the additional risk-bearing capacity of the European Fund
for Strategic Investments, and on maximising synergies between national and EU
schemes.
4.                 
Improving the investment environment 
The third strand
of the Plan consists of providing greater regulatory predictability, removing barriers
to investment across Europe and further reinforcing the Single Market by creating
the optimal framework conditions for investment in Europe. The Single Market is
 Europe's greatest structural reform achievement.
Much can be done
at national level. The Commission, together with the other EU Institutions,
will steer and follow progress in the context of the European Semester for
economic policy coordination. At EU level, the Commission will shortly present its
priority initiatives in its 2015 Work Programme, with first actions to be
initiated in the coming weeks. 
The
European Council is invited to endorse the overall approach and the European
Parliament and the Council, as the EU legislator, should ensure swift adoption
of the forthcoming legislative measures that are necessary to improve the
regulatory environment for investment.
4.1.
Simpler, better and more predictable regulation at all levels
Optimal
framework conditions for business across the Single Market are essential to
unlock the full potential of investment in Europe. The regulatory framework, at
national as well as European level, needs to be simple, clear, predictable and
stable to incentivise investments with a longer term horizon. Efforts to reduce
administrative burdens and simplify regulations remain slow and uneven, despite
significant efforts by the Union and its Member States. This is particularly
problematic for SMEs, the job creators and backbone of Europe's economy.
Improving the conditions for growth is therefore essential to ensure that
investment projects can prosper and that money spent on strategic investments
under this Plan – and beyond – is put to effective use.
Better regulation
is a joint responsibility of the Member States and of the European
institutions. This is not about de-regulation but about smart regulation to
benefit citizens and businesses alike. This includes reducing unnecessary
regulatory burdens and improving business conditions, in particular for SMEs,
to ensure that any necessary regulation is simple, clear and fit for purpose. This
also means improving the effectiveness of national expenditure, the efficiency
of tax systems and the quality of public administration at all levels. Member
States are also responsible for the timely and full application of EU law. They
need to ensure that transposition measures are as simple, clear and light as
possible, avoiding creating additional burdens or so-called 'gold-plating' when
transposing EU law into national law.
The Commission
has made better regulation one of the main priorities of this mandate. This
will already be reflected in the Commission Work Programme for 2015. The
Commission will further strengthen its overall approach of better regulation in
2015 and give it fresh impetus. Regulation should remove obstacles to growth,
allow new opportunities to flourish, minimise costs and guarantee social and
environmental sustainability. The Commission will in particular step up its
efforts under the “Regulatory Fitness and Performance Programme” (REFIT), and
will work with the EU legislator to ensure that any proposed simplification of
laws is effectively delivered in practice.
4.2. New
sources for long-term financing, including steps towards a Capital Markets Union
Recent reforms
of the EU's financial regulation framework and the completion of the Banking
Union will help develop a transparent, safe, responsible and resilient
financial sector contributing to stability and confidence.  But investment
remains heavily reliant on bank intermediation; long term finance for
infrastructure remains constrained. Many SMEs still have limited access to
finance and the free movement of capital across the EU remains a work in
progress. 
Over time, the
creation of a Capital Markets Union (CMU) will reduce fragmentation in the EU's
financial markets. This will also help bring about a more diverse supply of
finance to SMEs and long-term projects by complementing bank financing with
deeper, more developed capital markets. A genuine single capital market will
help to reduce the cost of funding for the rest of the economy. The Capital
Markets Union is therefore an important medium to long-term component of this
Plan. 
A broad
consultation at the beginning of 2015 will help to develop further and
prioritise the main areas for action to remove obstacles to investment
financing and progress towards a Capital Markets Union.
The main areas
for action in the short term include: 
§ 
Adoption before the end of 2014 of the proposed Regulation
on European Long-term Investment Funds (ELTIF). The goal is to have ELTIFs operational
by mid-2015 as useful vehicles for investments in long-term projects. ELTIFs
could also play a role in providing a complementary vehicle for delivering
public or private/public investments in the rest of the economy. 
§ 
Reviving high quality securitisation markets,[14] without repeating
mistakes made before the crisis. The Commission will reflect on the best ways to
present criteria 
for simple, transparent and consistent securitisation, building on recent
measures 
in the insurance and banking sectors and international work in this area.
Reviving this asset class will help developing a deep and liquid secondary
market, attract a broader investor base and improve the allocation of finance
to where it is most needed.
§ 
Examining how to address the current lack of standardised
credit information on SMEs, building on work already initiated in this area,
as well as improving information on the planning of infrastructure projects as
well as on their credit history.
§ 
Exploring with the private sector the best ways
of more widely replicating across the EU the success of Private Placement regimes
in some European markets
§ 
Reviewing existing measures such as the Prospectus
Directive to lighten the administrative burden on SMEs, making it easier
for them to fulfil listing obligations. 
4.3. Reinforcing
the level-playing field and eliminating barriers to investment in the Single
Market 
To make the most
of the Single Market and make it an effective launch pad for companies, determined
efforts are needed. While some measures may be more long-term than others,
improving the framework conditions for jobs, growth and investment is an
inherent dimension of this Plan. Areas particularly relevant in the short- and
medium term include the following:

 The energy and transport sectors are important
     dimensions of the Single Market and the implementation of recent reforms
     needs to be accelerated. The European Energy Union will be
     instrumental in this context. The full implementation of the Third Energy
     Package must be ensured. Rules for energy-cross-border trade still remain
     highly fragmented. Market-distorting retail price regulation continues in
     some Member States and needs to be addressed. The Commission will also
     take the necessary action to follow up on recent decisions concerning the
     2030 climate and energy framework.
 Structural reforms to resolve barriers to investment in transport
     infrastructure and systems, notably with a cross-border dimension, also
     need to be implemented swiftly. To reap the full benefits of the Single
     Market, the European Single Sky objectives should be ensured, as well as the
     rapid adoption and subsequent implementation of the Fourth Railway Package.

§ 
Europe needs to develop
a truly connected Digital Single Market, including through swift and
ambitious legislative steps in the areas of data protection, telecoms
regulation and by modernising and simplifying copyright and consumer rules for
online and digital purchases. The digital single market should deliver trust
and security in online transactions, interoperability of different
technological solutions and access to digital resources and infrastructures (in
particular spectrum licencing policies). The Single Market should be open to
new business models, while ensuring that essential public interest objectives
are met. Consumers should be given unhindered access to online content and services
across Europe without discrimination based on their nationality or their place
of residence. 

 Services and product markets are
     increasingly intertwined. Stepping up reforms is required to address
     disproportionate legal form, shareholding and authorisation requirements
     and to improve mutual recognition in particular for sectors and
     professions with high cross-border trade potential. Efficient application
     of public procurement rules should be ensured at all levels, as well as
     the promotion of 
     e-procurement tools.
 To boost research and innovation, EU competitiveness
     would benefit from fewer barriers to knowledge transfer, open access to
     scientific research and greater mobility of researchers.

§ 
Engagement with our international partners will
help to promote open investment flows. The internationalisation of European firms
improves their competitiveness. Investors from countries outside the EU can
play an important role in supporting the European economy.
5.                 
Next steps 
This Investment Plan
is not a one-off measure, but an investment offensive that will unfold over the
three years to come. This is a Plan that will fundamentally change public policy
and the financing tools underpinning investment in Europe, to achieve the
highest economic and societal return for every euro spent. 
The Plan
presented today is the first step in a new direction. Member States are invited
to join this initiative, including by providing further funding to the European
Fund for Strategic Investments, deepening the Plan's impact on the real
economy. Actions must be swiftly and effectively deployed at all levels so that
tangible effects are already seen in 2015.
The
Commission invites the European Council of 18-19 December 2014 to endorse the
Plan, with all its strands. It calls on the European Parliament and the Council,
as the EU legislator, to fast-track the necessary legislative measure to ensure
that the European Fund for Strategic Investments becomes operational by June
2015, and to follow up swiftly on 
the other aspects of the Plan.
Regular
stock-taking in the European Parliament, in meetings of Heads of State and
Government, in the relevant Council formations, and together with the European Economic
and Social Committee and the Committee of the Regions will give the political
ownership necessary to make sure these initiatives produce results. The Commission
and the EIB will approach key stakeholders at national and regional level to
organise dedicated follow-up activities in order to discuss and develop
specific solutions.
This Plan is
based on the assumption that no changes will be made to the Multi-Annual
Financial Framework or to the capital of the EIB at this point in time. Depending
on progress, additional actions will be considered by mid-2016, which will also
coincide with preparation of the mid-term review of the Multi-Annual Financial
Framework. 
ANNEX 1. WHAT
IS THE LIKELY IMPACT OF THE INVESTMENT PLAN?
ANNEX 2. HOW
WILL THE NEW FUND WORK IN THE CASE OF LONG-TERM INVESTMENTS?
EIB = European
Investment Bank
ANNEX 3. HOW
WILL THE NEW FUND WORK IN SUPPORT OF SMEs AND MID-CAP COMPANIES? 
EIF = European
Investment Fund
ANNEX 4. TIMELINE
AND MILESTONES
[1]
In some Member States, that dip is even more dramatic. This is notably the case
for Italy (-25%), Portugal 
(-36%), Spain (-38%), Ireland (-39%), and Greece (-64%).
[2]
As developed by ECB President Mario Draghi in his speech in Jackson Hole on 22
August 2014. 
See: http://www.ecb.europa.eu/press/key/date/2014/html/sp140822.en.html

[3]
Conclusions of the European Council of 23-24 October 2014, p. 8: “The
European Council supports the incoming Commission's intention to launch an
initiative mobilising 300 billion euro of additional investment from public and
private sources over the period 2015-2017” and the G20 Brisbane Action
plan, published on 
16 November 2014: “Additionally, the European Union in October announced a
major initiative mobilising additional public and private investment over
2015-17. We call for swift implementation of [these] packages”. See also
speech by ECB President Mario Draghi in Jackson Hole on 22 August 2014,
referred to in footnote 2.
[4]
In the context of this Plan, companies between 250 and 3000 employees are
considered mid-cap companies.
[5]
The legal instrument is likely to be a Regulation based on Articles 172, 182,
175(3) and possibly 173 TFEU.
[6] The Commission and the EIB agree that the Fund should be set up
within the EIB as a dedicated trust-fund. 
This will ensure a swift set-up and the Fund will benefit from the funding and
expertise in lending and risk management from the EIB's existing structures.
[7]
To ensure that infrastructure and project investments supported under this
initiative are consistent with state aid rules, projects should address unmet
needs (e.g. not duplicate existing infrastructure), crowd in private financing
to the maximum extent possible and avoid crowding out privately financed projects.
Supported projects should generally be open to all users, including competing
operators, on fair, reasonable and appropriate conditions so as to avoid the
creation of entry barriers to entry. To maximise the impact of such
investments, the Commission will formulate a set of core principles, for the
purpose of state-aid assessments, which a project will have to meet to be
eligible for support under the European Fund for Strategic Investments. If a
project meets these criteria and receives support from the Fund, any national
complementary support will be assessed under a simplified and accelerated State
Aid assessment whereby the only additional issue to be verified by the Commission
will be the proportionality of public support (absence of overcompensation).
[8]
COM(2013) 462 final, currently in so-called trilogue negotiations between the
European Parliament, the Council and the Commission. Once in force, the
Regulation will provide a common EU regulatory framework to enable funds
specialising in long term investments, for example in infrastructure projects
or SMEs, to operate throughout the EU, with the intention of attracting investors
with a longer term investment horizon.
[9]
This support shall be compliant with the Commission's State Aid Guidelines on
Risk Finance or shall be priced on market terms.
[10] In order to achieve this, Member States are recommended to deliver
through innovative financial instruments  a specific percentage of the allocations
made in their Partnership Agreements to each of the key investment areas as
follows: 50% in the field of SME support, 20% in the field of CO2 reduction
measures, 10% in the field of Information and Communication Technology, 10% in
the field of sustainable transport, 5% in the field of support for Research
Development and Innovation and 5% in the field of environmental and resource
efficiency. The use of micro-finance facilities to provide preferential loans
could also help to promote self-employment, entrepreneurship and develop
micro-enterprises.
[11] The SME-Initiative is a financial instrument that pools resources
from the Structural and Investment Funds, the COSME and Horizon 2020
programmes, the EIF and the EIB. It provides for two types of products to
improve SME-financing: uncapped guarantees to financial intermediaries and
securitisation of existing loans portfolios.
[12] Based on what can be done without disrupting the ongoing
programming of the Funds, it can be estimated that another EUR 26 bn of additional
investment funding could become available over the programming period 
2014-2020. This comes in addition to the doubling of the use of financial
instruments and is not taken into account in Annex 1.
[13] The European
Council of 23-24 October 2014 "welcomed the establishment of a Task
Force, led by the Commission and the EIB, with a view to identifying concrete
actions to boost investment, including a pipeline of potentially viable
projects of European relevance to be realised in the short and medium term."
[14] Securitisation is a financial practice, often used by banks,
consisting of pooling and repackaging of various types of contractual debt, as
for example residential mortgages. It can be used as a way to fund assets or a
means of transferring and diversifying risk.