EFSI will be extended until 2020 with the aim of mobilising €500 billion in investment
EU Finance Ministers gave the green light to the EC’s legislative proposal to extend and reinforce the European Fund for Strategic Investments (EFSI); a mechanism under which EU guarantees are used to mobilize private investment. The proposal for “EFSI 2.0”, was announced by EC President Junker in September 2016 (see news of 16 September 2016: “EC announces extension of EFSI”). The extension is expected to lead to the mobilization of €500 billion in investments for strategic infrastructure projects by 2020. EFSI 2.0 funding will be given to projects which: (i) provide added value (eg. in terms of energy efficiency and emission abatement), and (ii) would not otherwise go forward without additional funding. The fund will address in particular; the development of projects in Eastern and Southern Europe, to ensure that an effective geographical balance is made regarding the overall investment needed to meet the EU’s objectives under the Energy Union. The legislative proposal must now to be approved by the European Parliament before it can enter into force.