COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Europe investing again Taking stock of the Investment Plan for Europe and next steps
Date: 2016-06-01
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: EU investment, EU programme, economic growth, fund (EU), investment policy, private investment, public investment, sustainable development

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 1.6.2016  COM(2016) 359 final   COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Europe investing again Taking stock of the Investment Plan for Europe and next steps  
 
 
1.  Introduction 

Jobs, growth and investment are one of the Juncker Commission's 10 key priorities. The 
Investment Plan for Europe  was presented on 26 November 20141 and initiated concerted 
and  targeted  action  to  stimulate  financing  for  investment,  with  the  support  of  the  European 
Investment Bank (EIB) and the European Investment Fund (EIF) – together, the EIB Group –, 
as  part  of  the  virtuous  triangle  of  structural  reforms,  responsible  fiscal  policies  and 
investment.  The  purpose  is  threefold:  making  sure  that  scarce  public  resources  are  used  to 
mobilise  private  investment  to  target  market  failures  in  an  efficient  manner  by  crowding-in 
private  capital,  ensuring  that  investments  reach  the  real  economy,  and  improving  the 
investment  environment  at  the  European  level  as  well  as  at  the  level  of  individual  Member 
States.  The  European  Council  endorsed  the  Investment  Plan  with  all  its  components  in 
December 2014, calling for a swift delivery2. The EIB Group heeded the call of the European 
Council  and  started  investment  activities  under  the  plan  as  of  January  2015.  The  European 
Parliament  and  the  Council  subsequently  adopted  the  necessary  legislative  proposal  with 
exceptional speed in July 20153. Time has now come to take stock of the progress made and 
look ahead. 

In the 18 months since the Investment Plan was presented, the conditions for an uptake 
in  investment  have  improved  and  confidence  in  Europe's  economy  and  growth  are 
returning.  The  European  Union  (EU)  is  now  in  its  fourth  year  of  moderate  recovery,  with 
GDP growing at 2% in 20154. While the level of investment in the EU dropped significantly 
as a consequence of the financial crisis, there are early signs of recovery in spite of global and 
domestic  risks  to  growth.  The  comprehensive  efforts  initiated  with  the  Investment  Plan  are 
already  delivering  concrete  results,  despite  the  fact  that  macroeconomic  effects  of  larger 
investment  projects  cannot  be  immediate.  Investment  is  expected  to  continue  to  pick  up 
gradually throughout 2016 and 2017 although it remains below historically sustainable levels 
(see Chart 1).  

1  

2  

3  

4  

COM(2014) 903 final  

EUCO 237/14, available at  
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/146411.pdf 

Regulation  (EU)  2015/1017  of  the  European  Parliament  and  of  the  Council  of  25  June  2016  on  the 
European  Fund  for  Strategic  Investments  (EFSI),  the  European  Advisory  Hub  and  the  European 
Investment Project Portal and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013 – the 
European Fund for Strategic Investments  (OJ L 169, 1.7.2015, p.1). 

The Spring 2016 European economic forecast is was published on 3 May 2016 and is available at 
http://ec.europa.eu/economy_finance/eu/forecasts/2016_spring_forecast_en.htm  

EN 

2 

   EN 

 
 
 
 
                                                            
Chart 1. Investment trends in the EU 

Note: Real gross fixed capital formation (GFCF), Baseline vs. historical norm, EU, in 2013 prices, EUR billion 

This positive momentum must be maintained and efforts need to be continued to bring 
investment  back  to  its  long-term  sustainable  trend.  The  mechanisms  of  the  Investment 
Plan  work  and  must  be  reinforced  to  continue  the  mobilisation  of  private  investments  in 
sectors critical to Europe's future and where market failures remain. This includes investments 
in the areas of energy, environment and climate action5, social and human capital6 and related 
infrastructure, healthcare, research and innovation, cross-border and sustainable transport, as 
well as the digital transformation. The EU has clear and unique assets which are crucial for 
investment: the Single Market, the most skilled population in the world, a high level of social 
and  environmental  protection,  as  well  as  stable,  predictable,  efficient  and  transparent  legal 
systems.  While  there  is  no  silver  bullet  that  can  ensure  that  the  full  potential  for  EU 
investments is exploited within only a few months’ time, the encouraging results delivered in 
a short period of time provide a sound basis for future policy initiatives on both the use of the 
EU budget and the regulatory environment. 

5  

6  

This is in line with the EU's strong commitments reiterated at the Paris climate conference in December 
2015. 

The  forthcoming  "New  Skills  Agenda  for  Europe"  will  address  the  specific  question  of  investing  and 
improving skills and human capital in a broader context: while there is broad agreement that skills fuel 
R&D,  innovation,  employability  and  competitiveness,  evidence  shows  that  a  significant  share  of  the 
European workforce (c.20%) has only a low level of basic skills. This makes it hard to employ these low-
skilled  workers  and  contributes  to  structural  unemployment.  At  the  same  time,  many  vacancies  remain 
unfilled  due  to shortages of  skilled  labour. This points  to a  structural  investment  gap  in human  capital. 
Equipping  more  people  with  better  and  more  relevant  skills  requires  appropriate  funding  alongside 
structural reforms to improve the efficiency of education and training systems. 

EN 

3 

   EN 

 
 
 
 
 
 
                                                            
2.  A model for the future 

a.  A rapid and comprehensive set-up 

The Investment Plan has already started to deliver tangible results thanks to the rapid set-up of 
all its components: 

  The  European  Fund  for  Strategic  Investments  (EFSI),  implemented  and  co-
sponsored by the EIB Group, is firmly on track to deliver the objective of mobilising 
at least EUR 315 billion in additional investments in the real economy by mid-2018.7 
The market absorption has been particularly quick under the Small and Medium-sized 
Enterprises (SME) window where the EFSI is delivering well beyond expectations.  

  The Commission has issued guidance on how European Structural and Investment 
Funds (ESI Funds) can be combined with the EFSI to support additional investments. 
A first set of projects is being developed which shows how this combination works in 
practice.  This  will  also  support  the  objective  mentioned  in  the  Investment  Plan  to 
increase the use of financial instruments under the ESI Funds.  

  The  European  Investment  Advisory  Hub  (EIAH)8,  a  joint  initiative  of  the 
Commission  and  the  EIB,  delivers  360-degree  technical  assistance  and  advisory 
service and has already dealt with more than 160 requests. Whilst this is a promising 
start,  steps  are  being  undertaken  to  bring  the  advisory  services  closer  to  the  final 
beneficiaries and increase EIAH services in specific areas with unmet needs (including 
cross-border projects).  

  The  European  Investment  Project  Portal  (EIPP)9,  an  online  platform  bringing 
together European project promoters and investors from the EU and beyond, has been 
launched and is increasing the visibility and the financing opportunities for investment 
projects across Europe. 

  Finally,  the  Commission  has  already  tabled  a  number  of  initiatives  to  help 
supporting investment and facilitating  the financing of the economy, such  as the 
lowering  of  capital  charges  for  insurance  and  reinsurance  companies  as  regards 
infrastructure investments and the adoption of practical guidance on the application of 
State  aid  rules  in  the  context  of  public  funding  of  infrastructure  and  public-private 
partnerships (PPPs). In addition, the Energy Union, the Capital Markets Union, the 
Single  Market  and  the  Digital  Single  Market10  Strategies,  and  the  Circular 

The  delivery  of  the  EFSI  was  accelerated  in  line  with  the  transitional  provision  of  Regulation  (EU) 
2015/1017. 

http://www.eib.org/eiah/  

https://ec.europa.eu/priorities/european-investment-project-portal-eipp_en  

See the Communication "Delivering the Single Market for Jobs, Growth and Investments", also adopted 
today. 

7 

8  

9 

10 

EN 

4 

   EN 

 
                                                            
Economy package all contain specific measures that will remove concrete obstacles 
and  further  improve  the  environment  for  investment,  if  fully  implemented.  The 
Commission  has  also  engaged  in  a  structured  dialogue  with  Member  States  to  help 
removing national obstacles to investment in the context of the European Semester11 
in  areas  like  insolvency,  public  procurement,  judicial  systems  and  the  efficiency  of 
public administration or sector-specific regulations. 

b.  The European Fund for Strategic Investments: using scarce resources in a 

more efficient way 

Concrete and tangible results 

The EFSI12 is already supporting additional EIB Group investments in key areas for EU 
sustainable  growth.  Around  250  transactions  have  been  approved  under  EFSI  in  26  EU 
Member  States13,  which  are  expected  to  mobilise  EUR  100  billion  in  total  investment, 
representing around 32% of the overall objective of EUR 315 billion in new investments over 
three years. It has been successful in crowding in  significant additional finance (85% of the 
total investment mobilised) from private and public investors. The lists of projects under both 
EFSI windows are all accessible to the public14. The EFSI supports projects that contribute to 
addressing existing market failures and suboptimal investment situations, as well as many of 
our most pressing societal challenges.  

Additionality  is  a  fundamental  feature  of  the  EFSI  guarantee  that  needs  to  be 
strengthened in the selection of projects. EIB projects receiving budgetary support through 
the  EFSI  must  be  'additional'  in  the  sense  that  they  point  to  a  market  failure  or  suboptimal 
investment situations and therefore  would – in principle – not have been financed in the same 

11 

12 

13 

14 

The set of country-specific recommendations for the Member States adopted by the Commission in May 
put a particular focus on investment, asking where relevant to address shortfalls in investment, notably in 
infrastructure and in intangible assets, as well as to adopt and implement the needed structural reforms to 
improve the investment environment, which are complementary with action at EU level. See COM(2016) 
321 final. 

As  it  is  inherent  in  the  business  model  of  the  EIB  to  mobilise  private  sources for  financing  projects  in 
order to maximise the use of scarce public resources the available EUR 16 billion EU budget guarantee 
and the EUR 5 billion contribution from EIB are the basis for attracting significant private capital. 

The overview is available at http://www.eib.org/efsi/index.htm. These projects were approved by the EIB 
Group and vetted by the EFSI Investment Committee (or the Commission prior to the establishment of 
the Investment Committee). Some of the projects are not yet signed. Final figures may thus vary.  

For  the  Infrastructure  and  Innovation  Window  the  list  of  approved  projects  is  available  at 
http://www.eib.org/efsi/efsi-projects/index.htm. For the SME window, the list of agreements signed with 
intermediaries is available at http://www.eif.org/what_we_do/efsi/index.htm. More information per sector 
found  online,  at  http://ec.europa.eu/priorities/jobs-growth-and-
and  Member  State  can  be 
investment/investment-plan_en  

EN 

5 

   EN 

 
                                                            
period by the EIB without EFSI support, or not to the same extent15. To this end, a number of 
indicators and guiding principles are used by the EIB and the Investment Committee16 when 
assessing  eligibility  criteria.  The  level  of  risk  is  an  essential  element  of  how  to  assess  the 
additionality of projects supported by the EFSI guarantee. All operations approved by the EIB 
so far carry a risk corresponding to so-called EIB Special activities17. As a result, the EIB has 
been able to increase the volume of its portfolio of higher risk/Special activities, from around 
EUR 4 billion to more than EUR 20 billion per year so far. The EIB Group is also developing 
new  products  focussing  on  new  ways  of  collaboration  with  National  Promotional  Banks, 
Investment Platforms and with new types of beneficiaries in order to address financing needs 
in a variety of sectors.   

The  geographic  and  sectorial  coverage  should  be  enhanced.  Whilst  the  EFSI  does  not 
work  with  quotas,  the  current  sectorial  and  geographic  coverage  (see  Chart  2)  should  be 
further developed as the implementation of the EFSI moves forward. The combination of the 
EFSI  with  other  EU  funds  as  well  as  the  establishment  of  Investment  Platforms  should  be 
conducive  to  a  truly  balanced  geographical  coverage.  Also,  the  EIAH  can  be  an  effective 
means to progressively mobilise the expertise required and help developing better projects, in 
particular  for  regions  or  sectors  where  additional  outreach  and  technical  capacity  may  be 
needed. 

The  EFSI  is  supporting  the  European  Investment  Fund  (EIF)  to  help  exceptional 
numbers of European SMEs to access finance. The SME window of the EFSI has made a 
particularly  swift  start,  exceeding  expectations  and  confirming  the  high  market  demand. 
Within one year, the EFSI has supported EIF transactions that are expected to mobilise a total 
investment value of EUR 49 billion, which is already more than 65% of the target of EUR 75 
billion to be reached over three years18. Today, already more than 140,000 SMEs and mid-cap 
companies in 26 Member States are expected to benefit from the EFSI.  

15 

16 

17  

18  

See  Article  5  of  Regulation  (EU)  2015/1017.  Further  guiding  principles  are  outlined  in  the  EFSI 
Scoreboard  of  Indicators:  Commission  Delegated  Regulation  (EU)  2015/1558  of  22  July  2015 
supplementing  Regulation  (EU)  2015/1017  of  the  European  Parliament  and  of  the  Council  by  the 
establishment of a scoreboard of indicators for the application of the EU guarantee (OJ L 244 19.9.2015, 
p.20).  

The  Investment  Committee  of  the  EFSI  is  the  Committee  composed  of  eight  independent  experts 
responsible  for  approving  the  use  of  the  EU  guarantee  under  the  EFSI.  The  CVs  of  its  members  are 
available at http://www.eib.org/efsi/governance/efsi-investment-committee/index.htm 

Special  activities  are  activities  for  which  the  EIB  internal  rating  is  below  investment  grade,  i.e.  riskier 
activities than EIB normal operations. 

Through  the  front-loading  of  the  EFSI  on  of  Horizon  2020  InnovFin  and  COSME  SME  guarantee 
schemes and the reinforcement of the EIB Risk Capital Resources Mandate.  

EN 

6 

   EN 

 
                                                            
Chart 2. Key EFSI figures as of end-May 2016 

EFSI sectorial coverage (% of approved EIB Group financing under the EFSI)  

EFSI geographic coverage 

Going forward 

The  EFSI's  potential  to  play  an  even  stronger  role  for  sustainable  finance  needs  to  be 
fully  exploited.  Europe  requires  significant  new  long  term  and  sustainable  investments  to 
increase its productivity and shift to a low-carbon and resource-efficient economy19. This also 
includes support of the green/sustainable bond market, in which the EIB is the world's largest 
bond  issuer.  The  EFSI,  also  in  combination  with  other  EU  funds,  and  in  the  context  of  the 
Capital  Markets  Union,  provides  a  new  impetus  to  this  shift  by  increasing  the  number  and 
volume  of  sustainable  projects  to  be  financed  in  line  with  the  ambitious  goals  of  the  Paris 

19  

This  includes  incentives  that  support  the  integration  of  environmental  externalities  into  the  financial 
market decision processes.  

EN 

7 

   EN 

 
 
 
               
 
                
 
 
                                                            
climate agreement20. Technical assistance can also play an important role in these and other 
sectors like digital infrastructure.  

Building  on  the  success  of  the  SME  window,  new  financial  instruments  are  under 
development  to  support  a  broader  spectrum  of  innovative  SMEs  and  mid-cap 
companies,  including  an  equity  product,  which  will  enhance  access  to  equity  financing  for 
innovative and fast growing SMEs and mid-cap companies. In this context, the Commission 
is  also  working  with  the  EIF  with  a  view  to  establishing  a  Pan-European  Venture  Capital 
Fund-of-Funds  that  will  combine  public  finance  with  greater  volumes  of  private  capital  to 
bring  additional  scale  and  stimulus  for  the  support  of  the  most  promising  new  enterprises, 
complementing existing actions by the EIF. This Fund-of-Funds will operate on commercial 
terms and will aim at helping to overcome the fragmentation and limited scale that currently 
hamper the development of an EU Venture Capital asset class. In line with the EU's social and 
skills  agenda,  other  new  instruments  will  be  targeted  at  supporting  social  enterprises  and 
microfinance. Furthermore, products will be developed  to support securitisation transactions 
mobilising additional finance for SMEs, and to enhance the access to finance by innovative 
SMEs and small mid-cap companies through guarantees for un-collateralised loans. 

The use of the EFSI model to mobilise investments in developing third countries should 
be  explored.  Regulation  (EU)  2015/1017  limits  the  scope  of  EFSI  investments  to  EU 
Member  States  and  cross-border  investments  with  neighbouring  countries.  However,  a 
distinctive  but  similar  scheme  could  prove  useful  also  for  the  EU's  external  cooperation 
programmes. The Commission will assess the possibilities for using an EFSI-type model for 
investments  in  third  countries,  i.e.  a  scheme  that  would  allow  international  financial 
institutions  (IFIs)  to  address  specific  bottlenecks  to  investment  and  in  that  way  crowd-in 
private  actors.  It  could  also  enable  different  IFIs  to  expand  operations  in  challenging 
investment environments, such as fragile and post-conflict countries, as well as in migration-
related  projects.  In  its  assessment  the  Commission  will take  into  account  the  functioning  of 
and  complementarity  with  existing  investment  programmes  at  EU  level  (such  as  the  EIB-
managed  investment  facility  for  African,  Caribbean  and  Pacific  countries,  the  investment 
facilities  managed  by  the  European  Commission  and  the  loan/guarantee  programme  of  the 
EIB). 

c.  Ensuring complementarity at all levels to unlock additional investments  

Complementarity 

Complementarity  between  the  EFSI  and  other  EU  funds  is  a  key  part  of  the 
Commission’s overall commitment to ensure a better use of EU funds across all policy 
areas21.  The  combination  of  EFSI  support  and  other  sources  of  EU  funding  can  cover 

20   New pilot instruments such as the Private Finance for Energy Efficiency (PF4EE) and the Natural Capital 

Financing Facility (NCFF) can help show the way.  

21 

The 2014 Communication "An Investment Plan for Europe", recommended Member States to commit to 
increase significantly their use of innovative financial instruments in key investment areas such as SME-

EN 

8 

   EN 

 
 
                                                            
 
different types of risk of a given project, and thereby attract more investors. Co-investment in 
EFSI projects can take place either at project level or at the level of an Investment Platform. 
These Platforms can help finance smaller projects and bundle funds from different sources to 
enable  diversified  investments  with  a  geographic  or  thematic  focus.  They  can  also  render 
smaller  or  local  investment  opportunities  financially  attractive  to  new  investor  groups,  for 
example  pension  funds  or  overseas  institutional  investors.22  First  examples  of  Platforms 
include a Fund set up in February 2015 to boost productive investment in France. This Fund 
aims to support, together with private partners and funds from the French state, newly created 
companies  in  order  to  finance  their  transition  to  the  industrialisation  phase  of  new 
technologies and new sectors. The objective is to promote the development of new industrial 
opportunities,  enhancing  competitiveness  and  support  the  development  of  industrial  clusters 
in  particular  with  respect  to  the  ecological  and  energy  transitions.  Other  EFSI  Investment 
Platforms are under preparation. 

Combining EU Funds with EFSI support 

The Commission will take further action to ensure that EU funds and EFSI support can 
be  easily  combined.  Such  combinations,  in  particular  in  the  case  of  ESI  Funds,  can  be 
particularly useful to ensure a wide geographical coverage of the EFSI. The Commission has 
already published concrete guidance on this matter23 and will continue to further simplify the 
overall framework to develop such combinations. For instance, the Commission is preparing 
proposals  to  change  the  Common  Provisions  Regulation  governing  the  combination  of  ESI 
Funds with the EFSI to facilitate their use in EFSI Investment Platforms, the combination of 
ESI  Funds  and  EFSI  in  blended  instruments,  and  encourage  the  general  use  of  financial 
instruments.  The  establishment  of  smart  specialisation  platforms  (e.g.  for  industrial 
modernisation) will facilitate this further. 

Beyond  ESI  Funds,  the Commission,  in  cooperation  with  the  EIB  Group  and  EIAH,  is  also 
exploring  ways  to  further  facilitate  the  blending  and  combination  of  funds  available  under 
other  EU  programmes  (as  for  example  the  Connecting  Europe  Facility  (CEF)24  or  Horizon 

support,  energy  efficiency,  Information  and  Communication  Technology,  transport  and  R&D  support. 
This would achieve an overall doubling in the use of financial instruments under the ESI Funds for the 
programming period 2014-2020.  

22 

The EFSI Steering Board has adopted a set of rules applicable to EFSI operations with Investment 
Platforms and National Promotional Banks, available at 
http://www.eib.org/attachments/strategies/efsi_steering_board_rules_applicable_to_operations_with_inve
stment_platforms_and_npbs_or_institutions_en.pdf  

23 

 http://ec.europa.eu/regional_policy/sources/thefunds/fin_inst/pdf/efsi_esif_compl_en.pdf  

24   Regulation (EU) No 1316/2013 establishing the Connecting Europe Facility, amending Regulation (EU) 
No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010. Since the beginning of 
2015, 4 projects have been approved using the CEF Debt Instrument (or the legacy financial instrument 
Project Bond Initiative-PBI). These projects leverage total investments for EUR 1.8 billion additional to 
the investment mobilized by the EFSI. 

EN 

9 

   EN 

 
                                                                                                                                                                                          
202025) with EFSI opportunities in order to unlock additional investments. This combination 
and  blending  could  lead  in  particular  to  additional  investments  through  Investment 
Platforms26, SME risk-sharing instruments, and to projects with high EU added value27.  

Mobilising co-financing from Member States 

In partnership with the EIB Group, National Promotional Banks (NPBs) play a key role 
in  the  implementation  of  the  Plan  given  their  complementary  product  ranges,  local 
knowledge and geographic reach28. Nine Member States29 have so far committed to co-finance 
projects in the context of the EFSI mostly via their NPBs for a total of EUR 42.5billion. 

Under the SME window, the EIF is currently developing additional cooperation models with 
NPBs  in  the  areas  of  equity  investments  and  SME  securitisation,  with  a  view  to  further 
increasing the involvement of NPBs in the achievement of the EFSI's objectives.  

Accommodating capital inflows in Europe  

The  EFSI  is  part  of  the  EU's  open  economy  and  is  open  to  co-investments  from  third 
parties  (both  at  the  level  of  projects  or  Investment  Platforms)  in  non-exclusive  terms, 
provided that the EU's guiding principles and legislative framework are fully respected. The 
Commission  and  the  EIB  have  developed technical  options  to  accommodate  co-investments 
from sovereign wealth funds. The People’s Republic of China was the first non-EU country to 
announce its willingness to contribute to the Investment Plan30 and considers doing so through 
a  co-investment  structure.  The  Commission  is  open  to  considering  similar  options  for  other 
sovereign investors.  

25   Regulation (EU) No 1291/2013 establishing Horizon 2020 - the Framework Programme for Research and 

Innovation (2014-2020) and repealing Decision No 1982/2006/EC. 

26 

For example in the fields of energy efficiency, smart urban mobility, and innovative technologies such as 
regarding alternative fuels and electric vehicles, broadband, as well as infectious diseases. 

27  

For example cross-border Trans-European Network projects.  

28 

COM(2015) 361 final 

29 

In February 2015, Germany announced that it would contribute €8 billion to the Investment Plan through 
KfW. Also in February, Spain announced a €1.5 billion contribution through Instituto de Crédito Oficial. 
In March 2015, France announced a €8 billion pledge through Caisse des Dépôts and Bpifrance and Italy 
announced  it  will  contribute  €8  billion  via  Cassa  Depositi  e  Prestiti.  In  April  2015  Luxembourg 
announced  that  it  will  contribute  €80  million  via  Société  Nationale  de  Crédit  et  d’Investissement,  and 
Poland announced that it will contribute €8bn via Bank Gospodarstwa Krajowego. In June 2015, Slovakia 
announced a contribution of €400 million through its National Promotional Banks Slovenský Investičný 
Holding  and  Slovenská  Záručná  a  Rozvojová  Banka,  and  Bulgaria  announced  a  contribution  of  €100 
million  through  the  Bulgarian  Development  Bank.  On  16  July  2015,  the  UK  announced  that  it  will 
contribute £6 billion (about €8.5 billion) to projects benefiting from EFSI backing. 

30  

http://europa.eu/rapid/press-release_IP-15-5723_en.htm 

EN 

10 

   EN 

 
                                                            
3.  Making  investments  happen  in  the  real  economy  with  a  stable  pipeline  of 

stronger projects 

a.  Strengthened and more targeted technical assistance to make investments 

happen 

The European Investment Advisory Hub (EIAH/the Advisory Hub) is a joint initiative by 
the Commission and the EIB, which provides a single entry point for advisory support - free 
of  charge  for  public  authorities  –  for  the  identification,  preparation  and  development  of 
investment projects in all sectors and regions in Europe. 

The number of requests to the Advisory Hub is increasing: as of end-May 2016 more than 160 
requests were received from 26 Member States; around two-thirds are from the private sector. 
The Advisory Hub is  easily  accessible online31  and  is  engaging  proactively  in  priority areas 
such  as  energy  efficiency,  SMEs,  as  well  as  emerging  areas  such  as  smart  cities  or  electro-
mobility  and  broadband.  The  Advisory  Hub  devotes  a  particular  attention  to  public-private 
partnerships and cross-border projects. 

Chart 3. Requests to the EIAH as of end-May 

Number of requests by country 

Project-specific requests by sector 

31  

http://www.eib.org/eiah/  

EN 

11 

   EN 

 
 
 
 
                                                            
To  deploy  the  services of  the  Advisory  Hub  at  national  level,  the  EIB  and  the  Commission 
have  been  working  closely  with  National  Promotional  Banks  as  well  as  with  other 
international  partners  such  as  the  European  Bank  for  Reconstruction  and  Development  and 
the  World  Bank  both  to  enhance  presence  on  the  ground  as  well  as  to  provide  advisory 
support  complementary  to  those  areas  currently  not  delivered  by  the  EIB.  The  EIB  is  also 
developing  its  network  of  local  external  offices  which  will  facilitate  the  dissemination  of 
information,  and  more  tailor-made  technical  assistance  at  the  local  level  and  the 
implementation of suitable EFSI products.  

The EIB and the Commission will also explore the possibility for the EIAH to advise Member 
States  in  the  development  of  local  technical  assistance  schemes  for  smaller  projects,  which 
could be possibly be supported by ESI Funds. The Commission will explore with interested 
Member  States  the  possibility  of  strengthening  the  EIAH  network  with  contributions  from 
their ESI Funds allocations. 

The Commission will also contribute to strengthening the administrative capacity of Member 
States  to  set  up  public-private  partnerships  by  further  facilitating  the  exchange  of  good 
practices between local, regional, national and EU authorities. 

More and improved technical assistance. In the future, the Advisory Hub has a vital role in 
ensuring more streamlined access for beneficiaries by simplifying and merging the underlying 
envelopes for technical assistance and directing them to the support most suited to their needs. 
Improved  synergies  between  the  current  dedicated  Technical  Assistance  Programmes  at  EU 
level  (for  example  CEF,  Horizon  2020,  Jaspers,  etc.)  could  lead  to  better  access  for 
beneficiaries  and  may  ultimately  provide  more  financial  flexibility,  lead  to  more  targeted 
advice,  allowing  for  improved  assistance.  Moreover,  the  Advisory  Hub  should  be  further 
streamlined to ensure more specific advice and outreach activities, increasing the support and 
reach a higher number of potential project promoters where the needs are the greatest. There 
is also significant untapped potential to be mobilised for investments in digital infrastructures, 
e.g. broadband fibre networks32 and large scale demonstrators. More can be done to facilitate 
investment  in  other  innovative  and  sustainable  solutions  contributing  to  the  development  of 
smart  cities,  providing  better  integration  of  ICT  infrastructure  with  energy,  transport,  water 
and waste. 

b.  A new Portal for better visibility of investment opportunities in Europe 

Providing  greater  visibility  to  Europe's  investment  opportunities.  In  order  to  match 
existing  liquidity  in  the  financial  markets  and  investment  projects  in  the  real  economy,  the 
Commission  has  developed  a  European  Investment  Project  Portal  (EIPP),  where  EU 
project promoters are given the opportunity to boost the visibility of their projects to investors 

32  

Technical assistance specifically for broadband should help in that context, as well as the combination of 
CEF broadband, Horizon2020 and EFSI.  

EN 

12 

   EN 

 
                                                            
worldwide33. This initiative responds to one of the clearly identified structural bottlenecks to 
investment in the European Union. 

Chart 4. Projects submitted to the EIPP as of end-May 

Number of projects by country 

Main sector of projects on the EIPP 

This initiative supports the policy orientation endorsed in international fora like the IMF, the 
G20  and  the  OECD,  which  have  all  underlined  the  need  to  create  a  transparent,  forward 
looking  pipeline  of  projects  that  could  serve  potential  investors.  In  the  future,  the  Project 
Portal will also provide links to national and regional pipelines of smaller projects. 

The  Commission  will  closely  monitor  the  feedback  from  the  market  with  a  view  to 
progressively  improve  the  Portal's  features  and  ensure  coherence  with  on-going  initiatives 
under the aegis of the G20. 

33  

The  Project  Portal  is  launched  on  the  1st  of  June  and  it  is  available  under  http://ec.europa.eu/eipp.  By 
creating  a  common  meeting  point,  the  Commission  seeks  to  serve  both  EU  project  promoters  and 
international investors. The quality of the projects however will be assessed only by potential investors. 
The  publication  of  an  investment  project  on  the  Project  Portal  is  not  a  pre-condition  or  guarantee  for 
receiving  any  EU  or  EIB/EFSI  financing  support  and  projects  already  receiving  EU  and/or  EIB/EFSI 
support can still advertise their project on the Portal if additional financing is necessary. 

EN 

13 

   EN 

 
 
 
 
                                                            
4.  Improving the investment environment by removing obstacles to investment and 

providing regulatory certainty 

In  addition  to  the  new  approach  to  funding  and  the  delivery  of  technical  assistance, 
concrete actions have been initiated to remove financial, administrative and regulatory 
barriers to investment, and further deepen the Single Market. Improving and diversifying 
sources of finance is a necessary, but not sufficient factor. Europe needs to create a regulatory 
environment which is predictable, reduces administrative burdens and encourages investment. 
These  efforts  at  EU  level  go  hand  in  hand  with  Member  States’  commitment  to  continuing 
reforms  with  the  aim  of  removing  administrative,  financial  and  sector-specific  barriers  at 
national level, in the context of the European Semester and beyond. 

a.  Progress at EU level: completing the Single Market and simplifying 

existing sectorial rules  

Many  of  the  Commission’s  key  initiatives  support  these  objectives.  Today,  the 
Commission  has  issued  a  Communication,  reporting  on  its  work  on  "Delivering  the  Single 
Market  Agenda  for  Jobs,  Growth  and  Investment"34.  The  actions  mentioned  in  that 
Communication are essential for the long-term delivery and success of the objectives of the 
Investment  Plan  for  Europe.  In  addition,  the  Energy  Union  Strategy35  aims  at  providing  a 
stable  market-based  regulatory  framework  that  will  support  the  transition  to  a  low-carbon 
economy  conductive  to  investment,  notably  in  flexible  and  low-carbon  generation  with  the 
EU consumers at its core. The necessary legislative measures to implement a stable regulatory 
framework to support this transition will be proposed in the course of this year. In parallel, the 
Commission's Better Regulation agenda seeks to simplify the legal framework and to reduce 
regulatory burden. 

As  concrete  examples  of  barriers  to  investment  addressed  in  the  context  of  the  Capital 
Markets Union, the capital charges for insurers investing in qualifying infrastructure projects 
and unlisted European Long-Term Investment Funds have been reduced and the new rules are 
already in force36. Further amendments to Solvency II are considered for insurers' investments 
in infrastructure corporates. The Commission will evaluate whether it is appropriate to lower 
bank  capital  charges  for  infrastructure  exposures  in  a  similar  way,  taking  into  account 
discussions on capital treatment of bank exposures in relevant international fora.  To facilitate 
venture capital investment in Europe, together with the Pan-European Venture Capital Fund-
of-Funds  initiative,  the  Commission  will  also  propose  some  changes  to  the  venture  capital 
regulatory framework. Preparatory work will soon be launched on development of European 
markets for personal pension products which can become an important reserve of capital for 

34 

COM(2016) 361 

35   COM(2015) 80 

36   Commission Delegated Regulation (EU) 2015/467 of 30 September 2015 amending Commission 

Delegated Regulation (EU) 2015/35 concerning the calculation of regulatory capital requirements for 
several categories of assets held by insurance and reinsurance undertakings (OJ L 85, 1.4.2016, p. 6). 

EN 

14 

   EN 

 
 
                                                            
financing long-term investment. To foster sustainable investments in line with the EU's strong 
commitments  made  through  the  Paris  climate  agreement,  reflections  on  how  to  develop  the 
overall financial policy framework in support of green finance should be taken forward on the 
basis of ongoing international work. 

These initiatives make investment more sustainable also in line with the need to shift private 
investment  in  support  of  the  transition  to  a  low-emission  and  climate-resilient  economy,  as 
required under the Paris agreement.   

The  Commission  is  also  taking  action  in  a  number  of  areas  with  direct  impact  on 
investment decisions in Europe:  

First, in the area of State aid, the Commission has clarified that EFSI financing is not State 
aid within the meaning of the Treaty, and EIB Group financing under the EFSI does not have 
to be approved by the Commission under EU State aid rules. Projects supported by the EFSI 
may however also benefit from co-financing by Member States. Such co-financing is, unless 
granted on market terms or unless falling within a block exemption, State aid, which must be 
approved by the Commission. To support the swift delivery of EFSI support, the Commission 
committed  to  assess  Member  State  co-financing  as  a  matter  of  priority,  completing  its 
assessment  within  six  weeks  of  receiving  the  required  information.  To  offer  further  legal 
certainty to investors as regards the financing of infrastructure, the Commission has provided 
practical  guidance  on  what  constitutes  State  aid,  in  the  form  of  a  Communication  on  the 
Notion  of  State  aid.  The  Notice  establishes  when  public  funding  of  infrastructure  is  in 
principle excluded from the application of the State aid rules37. 

Second,  in  the  area  of  public  accounting,  Eurostat  is  actively  consulting  Member  States  to 
ensure  that  PPPs  both  under  EFSI  and  in  general,  are  classified  according  to  the  national 
account principles behind the data used for fiscal surveillance38, so that they can be structured 
in  a  way  that  ensures  best  use  of  public  resources.  In  cooperation  with  the  Member  States, 
Eurostat  has  developed  a  statistical  methodology  for  the  classification  of  such  projects39. 
Furthermore,  on  request,  Eurostat  provides  ex-ante  advice  to  the  statistical  authorities  in 
Member States in order to assess whether PPP projects are to be classified inside or outside 

37 

38 

Commission Notice on the notion of State aid as referred to in Article 107(1) TFEU available at 
http://ec.europa.eu/competition/state_aid/modernisation/notice_of_aid_en.pdf  

The fiscal indicators (deficit and debt) to be used in the context of the Excessive Deficit Procedure and 
the Stability and Growth Pact are anchored in the Treaty and are provided by Eurostat. The concepts and 
definitions to be used are based on the European System of Accounts (ESA 2010), which is in line with 
the  international  accounting  standards  and  has  been  adopted  by  Regulation  (EU)  549/2013  of  the 
European Parliament and of the Council of 21 May 2013 on the European system of national and regional 
accounts in the European Union, OJ L 174, 26.6.2013, p.1.  It is in the interest of policy makers and of the 
public in general that those indicators are calculated according to the highest quality standards, and that 
they are comparable between Member States. 

39  Manual  on  Government  Deficit  and  Debt  –  Implementation  of  ESA  2010  –  2016  edition,  available  at 

http://ec.europa.eu/eurostat/web/products-manuals-and-guidelines/-/KS-GQ-16-001  

EN 

15 

   EN 

 
                                                            
government accounts (there are examples of both), if useful in cooperation with the EIB. Such 
advice is publicly available in order to provide guidance40.  

Going forward, further efforts will be made to engage proactively with key stakeholders and 
public project promoters, while safeguarding Eurostat's independence. In particular, advisory 
capacity will be strengthened in relation to investments which are co-financed with EU funds 
including the EFSI. Moreover, Eurostat is also cooperating with the European PPP Expertise 
Centre of the EIB (EPEC) in order to clarify certain aspects of national accounting as regards 
the recording of PPPs, to explain accounting rules and to share experiences of PPPs with the 
Member  States.  Guidance  specifically  addressed  to  those  stakeholders  preparing  PPP 
contracts  will  be  published  in  the  summer.  In  cooperation  with  the  other  services  of  the 
Commission,  Eurostat will  closely monitor the impact of the public accounting rules on the 
creation  of  PPPs  in  different  sectors.  Where  appropriate,  it  will  review  its  guidance  in 
consultation  with  the  Member  States,  for  instance  to  take  into  account  the  specificities  of 
certain  contractual  arrangements,  such  as  Energy  Performance  Contracting  with  guaranteed 
savings. 

Third,  as  regards  public  procurement,  which  represents  a  sizeable  market  in  the  EU  and 
offers a source of potentially significant savings for the public purse, a new EU framework41 
was  adopted  in  2014,  with  a  deadline  for  national  transposition  by  18  April  2016.  The 
amended  framework,  which  includes  more  room  for  negotiation,  clearer  rules  as  regards 
contract modifications during the execution of the contract and rules for cross-border projects, 
will  facilitate  project  promotion,  in particular  for  projects  using  EU  funding.  The  new  rules 
will reduce both the time needed to get EU financing as well as the risk of refused payments. 
The Commission also encourages broader uptake of green public procurement to align public 
spending with sustainable development objectives42.  Going forward, the Commission intends 
to  put  in  place  by  October  2017  a  voluntary  ex-ante  consultation  mechanism  that  will  help 
contracting authorities making the most of the procurement framework. 

Fourth, and more generally, the design and approval of investment projects often requires 
the involvement of several Commission services, looking at the project from different angles 
–  e.g.  EU  funding,  public  accounting  rules,  state  aid  control,  environmental  permits  and 
public procurement. Going forward, the Commission will address the perceived complexity of 
EU rules and procedures by pursuing a stronger convergence of the timelines of the different 
procedures. For this purpose it will create an effective "one-stop-shop" for large infrastructure 

40 

advice 

This 
here: 
statistics/methodology/advice-to-member-states   

found 

can 

be 

http://ec.europa.eu/eurostat/web/government-finance-

41   Directive 2014/24/EU on public procurement; Directive 2014/25/EU on procurement by entities operating 
in  the  water,  energy,  transport  and  postal  services  sectors;  and  Directive  2014/23/EU  on  the  award  of 
concession contracts. 

42   More information on green public procurement is available at 

http://ec.europa.eu/environment/gpp/index_en.htm  

EN 

16 

   EN 

 
                                                            
projects where the checks run in parallel towards a common approval date, bringing together 
the responsible Commission  services in  a single investment policy team. Such an approach, 
which  is  already  followed  to  some  extent  in  the  field  of  energy  for  projects  of  common 
interest, should be extended to major Investment Platforms that involve national co-financing 
as well as to large infrastructure projects of EU added-value in other economic sectors such as 
transport,  including  projects  supported  by  the  EFSI.  The  objective  of  reducing  excessive 
administrative burden and time to obtain the necessary approvals and appraisals will also be 
pursued  through  on-ongoing  fitness  checks  of  EU  regulation  and  new  cooperation 
mechanisms  with  Member  States.  In  the  same  vein,  the  Commission  will  explore  the 
possibility to design a single EU authorisation framework that would directly apply to large 
projects  with  a  cross-border  dimension  or  major  Investment  Platforms  that  involve  national 
co-financing replacing a broad range of authorisation procedures at EU and national level.  

b.  Progress at national level: tackling barriers to investment in the European 

Semester  

Member States can also do more to improve the framework conditions for investment at 
the  national  level. The Communication  of 18 May  201643 provides  an overview of the key 
objectives  of  the  2016  country-specific  recommendations.  Where  available,  Member  States 
should use their fiscal space to increase public investment in areas conducive to growth, such 
as infrastructure, health, education and research. At the same time, further actions are needed 
to foster private investment and Member States are encouraged to accelerate the adoption of 
structural reforms and to tackle investment bottlenecks, such as regulatory and administrative 
barriers  as  well  as  cumbersome  and  lengthy  approval  procedures.  In  some  Member  States, 
remaining  inefficiencies  have  been  identified  in  the  areas  of  public  procurement,  taxation 
systems,  judicial  systems  and  insolvency  frameworks.  Progress  also  means  identifying  a 
stable  pipeline  of  projects  and  ensuring  coordination  and  planning  by  all  levels  of  national 
administration.  In  the  same  spirit,  the  Commission,  working  with  Member  States,  will  map 
out and continue work to resolve unjustified national barriers to the free movement of capital 
that are preventing a well-functioning Capital Markets Union. A report will be published by 
the end of 201644. 

On  1  July  2015,  the  European  Commission  established  the  Structural  Reform  Support 
Service  (SRSS)  in  order  to  offer  technical  support  to  Member  States,  including  capacity-
building assistance for growth-enhancing administrative and structural reforms. The SRSS is 
engaging  with  a  number  of  Member  States  on  concrete  technical  assistance  projects  to 
identify and remove barriers to investment45. 

43 

 COM(2016) 321 final 

44   COM(2015) 468 final  

45   On 26 November 2015 the Commission adopted a proposal for a Regulation on the establishment of the 
Structural Reform Support Programme for the period 2017 to 2020 and amending Regulations (EU) No 
1303/2013 and (EU) No 1305/2013, COM(2015) 701 final. 

EN 

17 

   EN 

 
                                                            
A stronger link between EU funds and reform implementation. In order to further focus 
ESI Funds on supporting key economic and social reforms under the 2014-2020 programming 
period,  the  Commission  intends  to  enhance  the  link  to  key  priorities  in  the  country-specific 
recommendations. The approval of the ESI Funds has been subject to the implementation of a 
number of reforms (ex-ante conditionalities) in order to facilitate the use and effectiveness of 
ESI  Funds.  The  legal  framework  covering  the  ESI  Funds  requires  that  programmes  co-
financed  by  ESI  Funds  address  all  relevant  country-specific  recommendations.  The 
Commission will monitor and report on progress towards the agreed objectives by 2017.  

5.  Looking ahead: a reinforced Investment Plan and EFSI 2.0 

Having  been  fully  operational  for  less  than  a  year,  the  EFSI  is  delivering  tangible  results. 
Project promoters have used the EIAH to enhance the quality of their projects and investors 
can now access numerous investment opportunities on the EIPP. In addition, the Commission 
has  tabled  a  number  of  initiatives  to  help  improving  the  investment  environment  and  has 
engaged with Member States to remove regulatory and administrative obstacles to investment.  

The innovative use of EU funds is paying-off due to the flexibility of the EFSI, the absence of 
red  tape  and  the  independent  selection  of  projects  based  on  their  technical  and  financial 
viability.  

According to the Regulation (EU) 2015/1017, the Commission shall review the use of the EU 
guarantee by January 2017 and submit an independent review on the functioning of the EFSI, 
the EIAH and the EIPP by July 2018 at the latest. However, as set out in this Communication, 
some important first lessons can already be drawn. 

Against  this  background,  the  European  Council  is  invited  to  endorse  the  following 
priorities: 

  Given the concrete results delivered, a reinforced EFSI will continue beyond the 
initial three-year period to address remaining market gaps and failures and continue 
to  mobilise  private  sector  financing  in  investments  crucial  for  Europe's  future  job 
creation, growth and competitiveness with strengthened additionality. To this end, the 
Commission will present the appropriate legislative proposals in the autumn to extend 
the duration of the EFSI, bearing in mind the scarcity of budgetary resources.  

  Given  its  success,  the  EFSI  SME-window  will  be  scaled  up  quickly,  under  the 
current  framework,  for  the  benefit  of  SMEs  and  mid-cap  companies  in  all  Member 
States. The Commission will work with the EFSI Steering Board to use all the existing 
possibilities under the EFSI-Regulation to reinforce the SME-window46.  

46  

This includes shifting up to EUR 500 million of the EU guarantee from the Infrastructure and Innovation 
window  to  the  SME  window;  and  using  the  EFSI  guarantee  to  top-up  InnovFin  and  COSME  loan 
guarantee instruments as well as the EU Programme for Employment and Social Innovation (EaSI). This 
will lead to an increase in the overall size of budgetary allocations for these instruments and allowing the 
EIF to finance a significant extra volume of operations. 

EN 

18 

   EN 

 
                                                            
  The  Commission  will  explore  the  possibility  of  using  an  EFSI-type  model  for 

investments in developing third countries. 

  The  combination  of  EFSI  support  and  ESI  Funds  will  be  further  simplified  and 
legislative  and  other  obstacles  to  such  combinations  will  be  removed.  In  particular, 
changes  to  the  applicable  regulations  will  be  explored  within  the  context  of  the 
upcoming mid-term MFF review47. The Commission and the EIB will work on a list 
of  flagship  projects  that  would  provide  concrete  examples  of  such  combinations  by 
end-2016. 

  The Advisory Hub will be enhanced in order to provide more targeted outreach 
and support development of advisory action at local level, as well as cooperation 
with  National  Promotional  Banks.  The  Commission  will  consider  synergies  between 
existing  EU  envelopes  for  technical  assistance  in  order  to  enhance  the  flexibility  of 
technical assistance provision and allow a rapid response to market needs. 

  The  establishment  of  Investment  Platforms  will  be  further encouraged,  with  strong 
engagement  from  the  Commission,  the  EIB  Group,  National  Promotional  Banks and 
other relevant actors. 

  The  EFSI  will  continue  to  contribute  to  the  development  of  the  market  for 
sustainable/green projects, by encouraging in particular the development of a green 
bond market in Europe and improved coordination of existing efforts. 

  The  Commission  will  continue  to  deliver  on  its  Single  Market  priorities.  Together 
with  Eurostat,  the  Commission  will  provide  further  clarity  and  review,  where 
appropriate,  relevant  guidance  as  regards  accounting  aspects  of  public-private 
partnerships. 

  Member  States  should  also  establish  clear  priorities,  prepare  concrete  investment 
projects  with  the  help  of  the  Advisory  Hub  –  in  particular  as  regards  cross-border 
projects – and structure their projects in an optimal way so as to ensure a greater use of 
financial  instruments.  In  the  context  of  the  European  Semester  process,  Member 
States  should  implement  the  country-specific  recommendations  to  address  national 
barriers to investment.  

Regular stock-taking by the European Council, the European Parliament, the relevant Council 
formations,  and  cooperation  with  the  European  Economic  and  Social  Committee,  the 
Committee  of  the  Regions,  will  ensure  the  necessary  political  ownership  to  make  sure  that 
these initiatives continue to produce results. The Commission and the EIB will also continue 
to  approach  key  stakeholders  at  national  and  regional  level  to  organise  dedicated  follow-up 

47  

This could include the creation of incentives for Member States to top-up EU-level financial instruments 
with  ESI  Funds  allocations,  moving  away  from  the  use  of  grants  where  financial  instruments  provide 
more value added, and allow for blending of grants and financial instruments to be combined with EFSI 
support where necessary, linking the level of financial support in specific project to their alignment with 
EU policy objectives and strengthening ex-ante conditionality. 

EN 

19 

   EN 

 
                                                            
activities in order to discuss and develop specific solutions, responding to local and regional 
needs. 

The  Commission  invites  the  European  Council  to  endorse  all  the  continued  efforts  in  the 
context  of  the  implementation  of  the  Investment  Plan  for  Europe,  as  set  out  in  this 
Communication. It calls on the European Parliament and the Council, as the EU legislator, to 
follow up swiftly on all legislative aspects of the Plan. 

EN 

20 

   EN