1. Investment Plan Errikos Velissaratos– European Commission – DG ECFIN -

2. 1 GROSS FIXED CAPITAL FORMATION AS % OF GDP, IN CURRENT PRICES

3. 2 Investment forecast: still flat...

4. Real gross fixed capital formation – Observed trend vs. "sustainable" level EU-28, in 2013 prices, € bn 3,039 2,527 2,543 2,528 2,567 2,640 2,717 3,021 2,657 2,714 2,659 2,647 230 370 Gap compared to sustainable trend 2,869 "Sustainable" trend of investment assuming a share in GDP of 21-22% 2,416 2,606

5. 4  Strong boost to strategic investments  Better access to investment finance for SMEs and mid-cap companies  Strategic use of EU budget  Better use of the European Structural and Investment Funds MOBILISING FINANCE FOR INVESTMENT  Project pipeline preparation and selection  Technical assistance at all levels  Strong cooperation between National Promotional Banks and the EIB  Follow-up at global, EU, national and regional level, including outreach activities MAKING FINANCE REACH THE REAL ECONOMY  Predictability and quality of regulation  Quality of national expenditure, tax systems and public administration  New sources of long-term financing for the economy  Removing non-financial, regulatory barriers in key sectors within our Single Market IMPROVED INVESTMENT ENVIRONMENT EU INVESTMENT TRIANGLE

6. EU guarantee EUR 16 bn * EU guarantee EUR 16 bn * EUR 16 bn x 15 Long-term investments circa EUR 240 bn SMEs and mid-cap firms circa EUR 75 bn EUR 5 bn European Fund for Strategic Investments EUR 21 bn Total extra over 2015-17: circa EUR 315 bn EUR 5 bn Possible other public and private contributions

7. 6 Multiplier effect PUBLIC MONEY IN THE FUND FINANCING CAPACITY EUR 1 TOTAL INVESTMENT IN PROJECT THIS RISK- BEARING CAPACITY ALLOWS TO FINANCE EUR 3 x 3x 5 EUR 3EUR 15 THIS ALLOWS OTHER INVESTORS TO JOIN WITH 5 TIMES MORE x 15

8. 7 Long-term investments EUR 1 of public contribution => circa EUR 3 of financing => circa EUR 15 of total investment SOURCES OF FUNDING TYPICAL PRODUCTS OFFERED FINAL RECIPIENTS AND TYPICAL PROJECTS Long-term senior debt for higher risk projects Equity and quasi-equity Subordinated loans Other investors join in on a project basis Transport infra Energy infra Broadband infra Energy and resource efficiency Renewable energy Research Education Innovation Other projects Long-term investment funds The Fund serves as credit protection for new EIB activities European Fund for Strategic Investments x 3 x 5

9. 8 SMEs and mid-cap EUR 1 of public contribution => circa EUR 3 of financing => EUR 15 of total investment SOURCES OF FUNDING TYPICAL PRODUCTS OFFERED Guarantees European Fund for Strategic Investments FINAL RECIPIENTS AND PROJECT EXAMPLES SME e.g. micro- loans to a SME Venture Capital Growth finance Securitisation Mid-cap company e.g. equity in a start-up x 3 x 5 e.g. loans for R&D project e.g. venture capital for a prototype The Fund serves as credit protection for new EIF activities Other investors join in on a project basis

10. 9 EFSI: a multi-tools, multi-sectorial instrument !

11. 10 Mobilising finance for investment – leverage EUR 75 bn EUR 240 bn EUR 20 bn (at least) EUR 315 bn Strategic investments of European significance in energy, transport, broadband, education, research and innovation Priorities at national and regional level (e.g. SMEs, research, transport, environment) SMEs and mid-cap companies Impact of Member States' contributions to the Fund Positive impact on investment throughout the economy Will depend on commitment Over three years Improved investment environment at EU and national level European Fund for Strategic Investments: EUR 21 bn (initially) Better use of the European Structural and Investment Funds Possible Member States' contributions to the Fund

12. 11 A pipeline of viable projects  The EC-EIB-MS Taskforce: 2000 projects, for EUR1.3 trillion (of which EUR500bn in the next 3 years) Technical assistance  Pooling resources & expertise Second Pillar: reach real economy

13. 12 Tackling barriers to investment World bank annual ranking of countries on the ease of doing business Some very good performers: Denmark: 4Ireland: 13 UK: 8Germany: 14 Finland: 9Estonia: 17 Sweden: 11 Some average performers: France: 31 Poland: 32 Spain: 33 Slovakia: 37 Bulgaria 38 Many very bad performers: Belgium: 42 Greece: 61 Romania: 48Cyprus:64 Slovenia: 51 Croatia: 66 Hungary: 54Malta: 94 Italy: 56 Luxemburg: 59

14. 13 Simple, better and more predictable regulation at all levels Capital Markets Union Making most of the Single Market Energy Union Digital Single Market Services Market Structural reforms in the Member States Removing barriers to investment

15. 14 Economic impact

16. 15 EFSI Regulation 1. What is the governance ? 2. What eligibility criteria ? 3. How can MS contribute? 4. How is the guarantee working ? 5. What are EIAH and the project pipeline ?

17. 16 EFSI: Governance Steering Board Who sits there? The representatives of the contributors at EFSI level. They pick their own Chair. How are decisions taken? By consensus if the only contributors are Commission and EIB. If there are more contributors: vote by simple majority possible if consensus can't be reached (but Commission or EIB can't be outvoted). What role? Sets the investment guidelines and the operating policies and procedures. It also appoints the MD, the dMD and the members of the Investment Committee.

18. 17 EFSI: Governance Managing Director How is he appointed? By the steering board, for a renewable term of 3 years. What is his role? The day to day management of EFSI. He prepares and chairs the meetings of the investment committee. He is also the public face of the EFSI.

19. 18 EFSI: Governance Investment Committee Who sits there? Six persons picked by the SB for their competence on project financing, for a renewable term of 3 years. The IC will be chaired by the Managing Director. How are decisions taken? By simple majority. What role? Approving the support of the EU guarantee for EIB projects. What inter-relation with the EIB? EIB staff will support the EFSI. A project approved by the IC must still be endorsed by the EIB Board.

20. 19 EFSI: eligibility criteria 1. Consistency with EU policies 2. Additionality 3. Economic viability 4. Mobilization of private resources

21. 20 EFSI: MS contributions EFSI level Representative in the SB Voting rights No SGP impact Investment platforms Regional, sectorial or national Investment clause applies Depending on the nature, ESIF may be usedProjects Investment clause applies ESIF may be used

22. 21 EFSI: Guarantee and GF What amount? 16bn, fully available on day one. What guarantee fund? 50% of outstanding volume of guarantee (8bn), progressively constituted over the MFF period. To this effect, envelopes of grants under H2020 (2.7bn) and CEF (3.3bn) are reduced. Who manages the GF? The Commission. When is a guarantee called? As a rule, after one or several default(s), once a year (except for equity, after netting revenues and losses.

23. 22 EFSI: EIAH and the pipeline EIAH What is it? A one stop shop for technical assistance for project structuring, project financing and where relevant legal advice What happens to the existing arrangements? They are maintained and sometime extended (eg Jaspers +). EIAH will be the point of access. Is EIAH building only on the EIB? No. It can also use the expertise of the Commission, National Promotional Banks and managing authorities of the ESIF.

24. 23 EFSI: EIAH and the pipeline Pipeline What is it? A website gathering information on current and potential future investment projects in the Union Who does what? Commission and EIB must gather and update information on projects which contribute significantly to achieving EU policies. Member States must do the same on their territory. What's the point? Providing easily accessible information to potential investors on investment opportunities so as to help smoothening the functioning of the market.

25. 24 Thank you for your attention !