Investment in the EU: EFSI as a new budgetary instrument

Negotiations for EFSI 2.0 are almost concluded: the European Fund for Strategic Investments was set up to deliver €315 billion by 2018, but the need to push further on investment brought EU institutions to extend it to 2020, with a targeted total investment of €500 billion. The European Parliament's Committee on Budgets, in the framework of a wide project on the Galaxy of Funds and Instruments around the EU Budget, commissioned CEPS to prepare a policy analysis of EFSI’s effectiveness and interplay with other EU expenditure headings. The analysis, carried out by CEPS budget specialists Jorge Núñez Ferrer and David Rinaldi, stresses that if one looks at EFSI taking into account its original mission, the evidence shows encouraging results and that the instrument is on track to attain expected targets. For EFSI 2.0, the authors recommend revising the Regulation to provide a window-specific definition of additionality and to strengthen parliamentary oversight. In order for EFSI to contribute to the greater goal of cohesion and development, they recommend the creation of a Development Window with a special guarantee for those EU regions with a particularly high market and operational risk. To this end, it is key to create synergies with Structural Funds covering the first loss piece (FLP) of operations. Núñez Ferrer and Rinaldi also emphasise the role of EFSI corollary policies, including the establishment of country offices for the Advisory Hub, the need to deliver on structural reforms and the development of a strategy for investment in human capital. 

See their report: “The European Fund for Strategic Investments as a New Type of Budgetary Instrument”.