On March 7th, the European Union implemented the InvestEU programme, with the signature of the Guarantee and Advisory Hub Agreements, between the European Commission and the EIB Group, composed by the European Investment Bank (EIB) and the European Investment Fund (EIF).
Specifically, the programme will provide a €26.2 billion EU budgetary guarantee to support finance and investment operations after the COVID-19 pandemic, to mobilise private and public financing to generate at least €372 billion in additional investments by 2027, benefitting people and businesses across Europe. The first InvestEU projects are expected to receive an InvestEU Guarantee as soon as April 2022, with at least 30% of all the investments made in areas directly supporting Europe’s green transition.
Moreover, the operations benefitting from the EU budgetary guarantee will finance investments in four policy areas: sustainable infrastructure; research, innovation and digitization; small and medium-sized enterprises (SMEs); and social investment. Working across all four of the InvestEU policy goals, the InvestEU Advisory Hub will provide further support with a scope of €270 million for advisory services regarding the identification, preparation, and implementation of the investment projects, in both the public and private sector, for the medium- and long-term economic objectives.
While the EIB Group will implement 75% of the EU budget guarantee (€19.65 billion), with the Guarantee Agreement determining the rules for granting the EU budget as well as for its implementation by the EIB and the EIF, the remaining 25% of the budget (€6.55 billion) will be used by other international financial institutions and promotional banks active in Europe, to help on more of a regional and local setting.
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