The European Parliament adopted by 496 votes to 57, with 144 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council establishing the InvestEU programme.

The proposed regulation aims to establish the InvestEU Fund, which will provide an EU guarantee in support of financing and investment operations carried out by implementing partners that contribute to the EU's policy objectives. The Commission and the EIB Group would establish a partnership to support the implementation of the InvestEU programme and promote its consistency, inclusiveness, additionality and efficient deployment.

The European Parliament's position adopted at first reading under the ordinary legislative procedure amends the Commission's proposal as follows:

Objectives of the InvestEU Programme

The general objective of the InvestEU Programme is to support the policy objectives of the Union by means of financing and investment operations that contribute to:

- the competitiveness of the Union, including research, innovation and digitisation;

- growth and employment in the Union economy, the sustainability of the Union economy and its environmental and climate dimension contributing to the achievement of the SDGs and the objectives of the Paris Agreement and to the creation of high-quality jobs;

- the social resilience, inclusiveness and innovativeness of the Union;

- the promotion of scientific and technological advances, of culture, education and training;

- the integration of Union capital markets and the strengthening of the internal market, including solutions to address the fragmentation of Union capital markets, diversify sources of financing for Union enterprises and promote sustainable finance;

- the promotion of economic, social and territorial cohesion; or

- the sustainable and inclusive recovery of the Union economy after the COVID-19 crisis, including by providing capital support for SMEs that were negatively affected by the COVID-19 crisis and were not already in difficulty in State aid terms at the end of 2019.

Budget and amount of the EU guarantee

The InvestEU Fund would mobilise public and private investment through an EU guarantee of EUR 26 152 310 073 (current prices) that would support the investment projects of implementing partners. The guarantee would be provisioned at 40% . An additional amount of the EU guarantee could also be provided in the form of cash or guarantees by the Member States.

It is provided that EUR 11 327 310 073 (current prices) be earmarked for objectives relating to support for sustainable infrastructure, research, innovation and digitalisation, accessibility of finance for SMEs and availability of microfinance and finance for social enterprises.

The actions taken should contribute to achieving a target of 30% of all Multiannual Financial Framework (MFF) expenditure dedicated to the integration of climate objectives and the ambition to have 7.5% of the budget earmarked for biodiversity expenditure in 2024 and 10% in 2026 and 2027.

Policy windows

The InvestEU Fund would operate through four policy windows, each aimed at addressing market failures or sub-optimal investment situations in their specific scope, namely:

(1) sustainable infrastructure (up to EUR 9 887 682 891);

(2) research, innovation and digitisation (up to EUR 6 575 653 460);

(3) SMEs (up to EUR 6 906 732 440);

(4) social investment and skills (up to EUR 2 782 241 282).

Just Transition Mechanism

A Just Transition Facility would be implemented horizontally across all policy strands. This would include investments to address social, economic or environmental challenges arising from the transition process towards the EU's 2030 climate target and its 2050 climate neutrality objective.

Strategic investments

All policy windows may include strategic investments including important projects of common European interest to support final recipients whose activities are of strategic importance to the Union, in particular in view of the green and digital transitions, of enhanced resilience and of strengthening strategic value chains.

In the case of strategic investments in defence and space sectors and in cybersecurity, as well as in specific types of projects with actual and direct security implications in critical sectors, the investment guidelines) should set out limitations with respect to final recipients controlled by a third country or third country entities and final recipients having their executive management outside the EU.

Investor advice and information services

The regulation would also establish:

- an ‘Invest EU Advisory Hub’ to support the development of investible projects, facilitate access to finance and assist in related capacity building;

- an ‘InvestEU Portal’, a database that would give visibility to projects for which promoters are seeking funding and provide investors with information on investment opportunities.

The financial envelope for the implementation of these measures would be set at EUR 430 000 000 (current prices).

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:

Budget and amount of the EU guarantee

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.

It is planned to allocate:

- 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 automatically to the InvestEU Fund, for the provisioning of the EU

guarantee for the period 2024-2027.

Policy windows

The InvestEU Fund would operate through 6 policy windows, corresponding to the main priorities for EU action, namely:

1) sustainable infrastructure (up to EUR 20 051 970 000);

2) research, innovation and digitisation (up to EUR 11 250 000 000);

3) SMEs (up to EUR 12 500 000 000);

4) social investment and skills (up to EUR 5 567 500 000);

5) European strategic investments (up to EUR 31 153 850 000);

6) solvency support for companies (up to EUR 11 250 000 000).

Strategic European investments

This new window would support final beneficiaries established in a Member State and carrying out an activity of strategic importance to the EU, in particular with a view to ecological and digital transitions and increased resilience in areas such as:

- provision of critical health care, manufacturing and stockpiling of medicines, including vaccines, medical devices and medical supplies, strengthening the capacity to respond to health crises;

- critical infrastructure (e.g. energy, transport, environment, health, 5G, Internet of Things);

- key enabling, transformative, green and digital key technologies (e.g. artificial intelligence, block chains, renewable energy technologies, biomedicine);

- tourism;

- strategic investments in renewable energy and energy efficiency projects, including building renovation.

Advisory and information services to investors

The regulation would also create:

- an ‘Invest EU hub’ to support the development of investment-ready projects, facilitate access to finance and assist in related capacity building;

- an ‘InvestEU portal’, a database that would give visibility to projects for which promoters are seeking funding, and provide investors with information on investment opportunities.

The financial envelope allocated to the implementation of these measures has been set at EUR 824 733 000 (current prices).

PURPOSE: 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 COVID-19 pandemic is a major shock to the world and EU economies. The contraction of EU GDP in 2020 - forecast at around 7.5% - is expected to be much deeper than during the 2009 financial crisis.

For the Multiannual Financial Framework (MFF) 2021-2027, the Commission therefore considers it necessary to propose a reinforced EU investment programme to provide crucial support to businesses and to ensure a strong focus of private investors on the Union's medium and long-term priorities, including the Green Deal for Europe and digital transitions, as well as increased resilience.

This is why the Commission is withdrawing its May 2018 proposal for the InvestEU programme and submitting a new proposal that takes full account of the partial agreement reached in April 2019 between the Parliament and the Council.

This new proposal (i) increases the amount of the initially proposed financial envelope (ii) amends the scope of the proposal to reflect on the post-pandemic needs of the European economy. It builds on the lessons learned from the EFSI evaluations and previous financial instruments (Connecting Europe Facility, Horizon 2020, COSME, Competitiveness and Innovation Framework Programme etc.).

CONTENT: the Commission proposes to create the InvestEU programme for the multi-annual financial framework 2021-2027 in order to bring together under a single structure all financing from the EU budget in the form of loans and guarantees.

The InvestEU programme shall be based on the following elements:

The InvestEU Fund

The InvestEU Fund shall mobilise public and private investment through a EU budget guarantee of EUR 75 153 850 000 (in current prices) which aims to support the investment projects of implementing partners. The Commission proposes that the guarantee be provisioned at 45%, which means that EUR 33 800 000 000 from the EU budget shall be set aside in case calls are made on the guarantee.

The European Investment Bank (EIB) Group shall remain a privileged implementing partner for the Invest EU. It shall implement 75% of the EU guarantee. National development banks or institutions may also become implementing partners.

Five policy windows

The InvestEU Fund shall operate through 5 policy windows, each of which is aimed at addressing market failures or investment shortfalls within their specific scope:

1. sustainable infrastructure;

2. research, innovation and digitisation;

3. SMEs;

4. social investment and skills;

5. strategic European investments.

In addition to increasing the resources of the sustainable infrastructure window, the Commission proposes to broaden the scope of the programme by adding a fifth strand - strategic European investment - with a view to meeting the future needs of the European economy and promoting and ensuring the strategic autonomy of the Union in key sectors. This window shall be endowed with an amount of up to EUR 31 153 850 000.

This new window shall support final recipients established in a Member State and carrying out an activity of strategic importance to the Union, in particular with a view to green and digital transitions and increased resilience in areas such as:

- provision of critical health care, manufacturing and stockpiling of pharmaceuticals, medical devices and medical supplies, strengthening the capacity to respond to health crises;

- critical infrastructure (e.g. energy, transport, environment, health, 5G, Internet of Things);

- key enabling, transformative, green and digital technologies (e.g. artificial intelligence, block chains, renewable energy technologies, biomedicine).

The InvestEU Advisory Hub

The advisory hub would provide technical support and assistance in the preparation, development, structuring and implementation of projects, including capacity-building. The EIB Group would play a central role in the implementation of advisory support under the Hub. A financial envelope of EUR 724 733 000 (in current prices) is foreseen for the InvestEU Advisory Hub.

The InvestEU Portal

The InvestEU Portal shall be established to provide for an easily accessible and user-friendly project database to promote visibility of investment projects searching for financing with enhanced focus on the provision of a possible pipeline of investment projects, compatible with Union law and policies.

Governance

An investment committee of independent experts shall remain responsible for approving individual requests. The Commission performs a policy check on proposed financing or investment operations to verify that they are compliant with EU law before a proposal is submitted to the Investment Committee.

Budgetary implications

For the period 2021-2027, the budgetary framework (commitments at current prices) foreseen for the InvestEU programme amounts to EUR 33 524 733 000. The overall provisioning will amount to EUR 33 800 million, of which EUR 1 billion will be covered by revenues, repayments and recoveries generated by existing financial instruments and the EFSI.