The European Parliament has agreed to support the InvestEU funding mechanism proposed by the European Commission.
Under the proposal, the various funding instruments of the EU will be brought together under a single umbrella as the InvestEU funding mechanism, which will replace the current European Fund for Strategic Investments (EFSI). The programme, which will crowd in public and private resources, is projected to raise between €650 billion and €698 billion between 2021 and 2027.
Parliament agreed to amend the Commission’s initial proposal for the InvestEU funding mechanism in a number of ways, including:
- Boosting the EU’s budget guarantee for the programme from the Commission’s suggestion of €38 billion investment to raise a projected €650 billion, to €40.8 billion to raise €698 billion;
- Laying out clear objectives such as increasing employment rates across the EU and meeting the targets set by the Paris Climate Agreement; and
- Introducing an InvestEU Steering Board, which along with the European Commission will report regularly to Parliament on the progress of the InvestEU funding mechanism.
José Manuel Fernandes, co-rapporteur for the Committee on Budgets, said: “InvestEU brings together all the financial instruments of the EU budget. EFSI or the Juncker Plan, which inspired the creation of the InvestEU funding mechanism, has already helped to create around 1 million jobs in the European Union and supported more than 850 000 small and medium-sized enterprises. The Commission proposes to trigger €650 billion in investments for the 2021-2027 period but we, in the Parliament, are aiming for almost €700 billion. The EU’s priorities must be reflected in the programme. InvestEU will be a very important tool for economic growth, job creation, entrepreneurship and social, economic, and territorial cohesion to the European Union.”
Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: “Europe needs more investments to boost jobs, innovation and skills. With the InvestEU funding mechanism we are taking the game-changing model of the Investment Plan one step further, expanding it to the whole range of EU funding programmes, making financing easier to access and placing a greater focus on climate action, social inclusion and cohesion. After the Parliament’s vote it is important to keep up the momentum. Member States should follow suit quickly.”
