Today, the United Kingdom announced that it will contribute £6
billion (about €8.5 billion) to projects benefiting from finance by the
European Fund for Strategic Investments (EFSI), which is at the heart of
the €315 billion Investment Plan for Europe.
The co-financing pledge – the biggest yet by any country – will come
from various programmes and bodies that are focussed on promoting
economic growth. Britain is the ninth country to contribute to the Plan
after Germany, Spain, France, Italy, Luxembourg, Poland, Slovakia and
Bulgaria, even before the EFSI becomes operational.
European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: "I
am delighted that the UK announced £6 billion – nearly €8.5 billion –
of co-financing for the European Fund for Strategic Investments
projects. This is the biggest announcement yet and will have a big
impact on SMEs and infrastructure in the UK. The Investment Plan for
Europe is moving into high gear."
Background...
On 28 May, just four and a half months after the Commission adopted the legislative proposal
on 13 January, EU legislators reached a political agreement on the
Regulation for European Fund for Strategic Investments (EFSI). Member
States unanimously endorsed it on 10 March and the European Parliament
voted in committee on 20 April. Finance Ministers welcomed the agreement
on the Regulation at the ECOFIN Council on 19 June, and the European
Parliament voted through the Regulation at their plenary session on 24
June, allowing the EFSI to be operational by September as planned.
In line with the European Council conclusions
of December 2014, which invited the European Investment Bank (EIB)
Group to "start activities by using its own funds as of January 2015",
the EIB has already announced
several projects to be pre-financed in the context of the Investment
Plan for Europe, in which it is the Commission's strategic partner.
National
Promotional Banks have a crucial role to play in getting Europe
investing again. They have the expertise to carry out the Investment
Plan, and they often ensure the most efficient use of public resources.
In February, 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 (ICO). In March, France announced a €8 billion pledge through Caisse des Dépôts (CDC) and Bpifrance (BPI) and Italy announced it will contribute €8 billion via Cassa Depositi e Prestiti (CDP). In April Luxembourg announced that it will contribute €80 million via Société Nationale de Crédit et d’Investissement (SNCI), and Poland announced that it will contribute €8bn via Bank Gospodarstwa Krajowego (BGK). In June, Slovakia announced
a contribution of €400 million through its National Promotional Banks
Slovenský Investičný Holding and Slovenská Záručná a Rozvojová Banka.
Also in June, Bulgaria announced it would contribute €100 million
through the Bulgarian Development Bank.
The
economic crisis brought about a sharp reduction of investment across
Europe. That is why collective and coordinated efforts at European level
are needed to reverse this downward trend and put Europe on the path of
economic recovery. Adequate levels of resources are available and need
to be mobilised across the EU in support of investment. There is no
single, simple answer, no growth button that can be pushed, and no
one-size-fits-all solution. The Commission is setting out an approach
based on three pillars: structural reforms to put Europe on a new growth path; fiscal responsibility to restore the soundness of public finances and cement financial stability; and investment to kick-start growth and sustain it over time. The Investment Plan for Europe is at the heart of this strategy.
