Regulation (EU) 2021/523 establishing the InvestEU Programme

What it is

to create the InvestEU Programme as a single investment support mechanism for Union policies for the period 2021-2027. PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure on an equal footing with the Council. BACKGROUND: while investment conditions in Europe have improved since the launch of the Juncker plan in 2014, thanks to a more favourable economic situation and government interventions such as the European Strategic Investment Fund (EFSI), there is still a significant investment gap in Europe. The European Parliament adopted by 615 votes to 34, with 39 abstentions, amendments to the proposal for a regulation of the European Parliament and of the Council establishing the InvestEU Programme. The matter was referred back to the committee responsible for inter-institutional negotiations. The proposed regulation aims at establishing the InvestEU Fund, which would provide an EU guarantee in support of financing and investment operations carried out by implementing partners that contribute to the EUs internal policy objectives, including EU priorities such as the European Green Deal and digital transition, increased resilience and sustainable and inclusive recovery of the EU economy after the crisis caused by the COVID-19 pandemic. The main amendments adopted in plenary concern the following points: The InvestEU Fund would mobilise public and private investment through an EU budget guarantee of EUR 91 773 320 000 (current prices) which would support the investment projects of implementing partners. Parliament has proposed that 40% of the guarantee should be provisioned. - EUR 31 153 850 000 (current prices) to financing and investment operations in ‘strategic sectors’, to maintain and consolidate the EU’s strategic autonomy and the inclusiveness and convergence of its economy, as well as to strengthen resilience to economic shocks; - EUR 19 850 000 000 (current prices) to operations related to ‘sustainable infrastructure’ and ‘solvency support for companies’ established in a Member State and operating in the EU and which face significant solvency risks as a result of the COVID-19 crisis; - EUR 40 769 470 000 (current prices) for objectives related to support for sustainable infrastructure, research, innovation and digitisation, accessibility of finance for SMEs and availability of microfinance and finance for social enterprises. If certain grants have not been fully utilised by 31 December 2023 or if certain loans to Member States have not been granted by 31 December 2023, part of the unused amount or unallocated room for manoeuvre, up to a maximum of EUR 16 billion (current prices), would automatically be made available to the InvestEU Fund to provision the Union guarantee for the period 2024-2027. Where certain the grants have not been used in their entirety by 31 December 2023, or where the loans to Member States have not been granted by 31 December 2023, part of the unused amount or the unallocated headroom, up to a maximum amount of EUR 16 billion (in current prices), shall be made available…

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