EU budget for recovery: An enhanced InvestEU Programme and Strategic Investment Facility
Source: European Commission Spokesperson's Service
As announced by European Commission President von der Leyen on 27 May 2020, the Commission is enhancing the proposal for the InvestEU Programme and creating a new Strategic Investment Facility within it to kick-start the EU economy.
The enhanced InvestEU programme, thanks to Next Generation EU, will provide crucial support to companies and ensure a strong focus of investors on the Union’s medium- and long-term policy priorities, such as the European Green Deal and the digitalisation transition and greater resilience.
The financial envelope for the sustainable infrastructure window is doubled, and a fifth “policy window” is added. The strategic European investment window will cater for the future needs of the European economy and promote and secure EU strategic autonomy in key sectors.
Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, said: “The crisis has created an immense investment gap of at least €1.5 trillion for this year and next, with the private sector facing the largest shortfall. This reinforced InvestEU is uniquely placed to support this sector. It will channel vital funding to companies by crowding in private investors. As we learn the lessons of this crisis, we will also have a fresh focus on supporting strategic investments in key sectors - part of our commitment to bolster the EU’s economic autonomy and resilience. This will make our economy better able to withstand future shocks.”
Paolo Gentiloni, Commissioner for the Economy, said: “The pandemic has dealt a terrible blow to investment in Europe – at a time when spending needs were already high in view of the green and digital transitions. We estimate that well over a trillion euros must be mobilised each year to lift our economies out of this crisis and make them fit for the future. The new InvestEU that we are proposing today is part of the answer to that challenge.”
Thierry Breton, Commissioner for the Internal Market, said: “Europe will come out stronger from this crisis if we increase our collective capacity to take care of ourselves and our interests – in short, if we become more resilient and sovereign. That is why, as part of our recovery plan, we are proposing a new instrument to mobilise €150 billion of investments in strategic industrial ecosystems and value chains across Europe. We will strengthen our SMEs and start-ups, protect our companies from predation by non-European players, support investments in key technologies and critical infrastructures and increase our production capacity in Europe.”
Commissioners Gentiloni and Breton will give a press conference on this topic on 29 May at 11:00 CET, which can be followed live on EbS.
For more information
Memo: The proposed InvestEU Programme
Factsheet: An enhanced InvestEU Programme and Strategic Investment Facility
Website: EU long-term budget 2021-2027: Commission Proposal May 2020