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European Fund for Strategic Investments
Europe is facing
huge domestic
and foreign policy challenges
For many, the European project that began with
the signing of the Treaty of Rome 60 years ago is
no longer a successful model for bringing former
enemy states together, tearing down borders and
promoting a prosperous economic area.
A major reason for the dwindling support is that
the European economy has yet to gain real momentum,
years after the crisis. Growth is lukewarm and
unemployment is high – particularly among young
people – and Europe still has a huge investment gap
of several hundred billion euros every year.
The reason for this investment shortfall is a market
failure. Persistent risk aversion and uncertain regulatory
and economic environment prevents companies
and investors from spending money on projects in the
real economy.
This is why, two years ago, the
European Investment Bank (EIB)
and the European Commission decided
to launch an investment offensive
based on three pillars:
Firstly, the “European Fund for
Strategic Investments”, or EFSI for
short: under this guarantee facility,
the EIB Group – comprising the
EU bank and the European Investment
Fund (EIF) – has committed
to expanding its usual activities to
strengthen the competitiveness of
the European economy by supporting
investments worth EUR 315bn
by 2018. A substantial portion of
these funds will support innovation
and the digital agenda in Europe.
Fotos: Katharina Schiffl
54 iconannual The European Business and Investment Magazine