The European Fund for Strategic Investments

In 2022, InvestEU took over as the new long-term investment programme of the European Union (EU), building on the success of EFSI.

Objective

The EFSI aimed to overcome the investment gap in the EU by mobilising private financing for strategic investments which the market could not finance alone.

The fund focused its financing on investments in infrastructure and innovation, as well as finance for Small- and Medium-sized Enterprises (SMEs).

Key elements

The EU provided €26 billion in funding through a budgetary guarantee, and the European Investment Bank's (EIB) own resources (€7.5 billion). The fund was set up within existing EIB Group structures, allowing it to start quickly and to benefit from the EIB's experience.

The EFSI had two main focuses: Infrastructure and Innovation (managed by the EIB), and SMEs (managed by the EIB and the EIF).

By the end of 2020, the EFSI had achieved remarkable success, surpassing its initial objective of mobilizing €500 billion in investments, and demonstrating the EU's commitment to boosting the real economy and fostering sustainable growth. Key to this success was EFSI’s exceptional multiplier effect - every euro invested by EFSI unlocked €15 in investments across the EU, demonstrating the fund's ability to amplify resources and attract substantial private sector participation.

As of the end of 2022, EFSI maintained its momentum, with €87 billion in signed operations. These investments mobilized an estimated €503 billion, showcasing EFSI’s ongoing role in attracting substantial investment for vital projects. By supporting initiatives facing market failures or sub-optimal investment conditions, EFSI ensured essential projects received the financing they needed, reinforcing the EU’s commitment to economic resilience and growth. 

What is the timeline?

• On 28 May 2015, EU legislators reached a political agreement on the Regulation for a European Fund for Strategic Investments (EFSI). This is just four and a half months after the Commission adopted the legislative proposal on 13 January.
• On 13 December 2017, the EFSI was extended to the end of 2020 and the funding increased from €21 billion to €33.5 billion, through the EFSI 2.0 Regulation.
• On 16 December 2022, the European Commission published the final evaluation of EFSI (SWD(2022) 443 final). 

Characteristics of projects that were eligible for EFSI financing:

• Had high societal and economic value contributing to EU policy objective.
• Able to attract private capital by addressing market failures.
• Came on top of existing EIB and EU financing possibilities.
• Economically and technically viable.
• Consistent with EU state aid rules.
• Some examples of key growth-enhancing areas targeted by the EFSI are:
  • Infrastructure (transport, energy, digital, environment, urban and social sectors)
  • Education and training, health, R&D, ICT, innovation
  • Renewable energy and energy efficiency
  • Support to SMEs and mid-cap companies.

To find out more:

• visit the EIB website
• contact infodeskeib [dot] org (infodesk[at]eib[dot]org)