Communication: Europe investing again – taking stock of the Investment Plan for Europe and next steps

Jobs, growth and investment are one of the Juncker Commission's 10 key priorities. The Investment Plan for Europe was presented on 26 November 2014 and initiated concerted and targeted action to stimulate financing for investment, with the support of the European Investment Bank (EIB) and the European Investment Fund (EIF) - the EIB Group - as part of the virtuous triangle of structural reforms, responsible fiscal policies and investment.

The purpose is threefold: making sure that scarce public resources are used to mobilise private investment to target market failures in an efficient manner by crowding-in private capital, ensuring that investments reach the real economy, and improving the investment environment at the European level as well as at the level of individual Member States. The European Council endorsed the Investment Plan with all its components in December 2014, calling for a swift delivery. The EIB Group heeded the call of the European Council and started investment activities under the plan as of January 2015. The European Parliament and the Council subsequently adopted the necessary legislative proposal with exceptional speed in July 2015. Time has now come to take stock of the progress made and look ahead.

In the 18 months since the Investment Plan was presented, the conditions for an uptake in investment have improved and confidence in Europe's economy and growth are returning. The European Union is now in its fourth year of moderate recovery, with GDP growing at 2% in 2015. While the level of investment in the EU dropped significantly as a consequence of the financial crisis, there are early signs of recovery in spite of global and domestic risks to growth. The comprehensive efforts initiated with the Investment Plan are already delivering concrete results, despite the fact that macroeconomic effects of larger investment projects cannot be immediate. Investment is expected to continue to pick up gradually throughout 2016 and 2017 although it remains below historically sustainable levels.

This positive momentum must be maintained and efforts need to be continued to bring investment back to its long-term sustainable trend. The mechanisms of the Investment Plan work and must be reinforced to continue the mobilisation of private investments in sectors critical to Europe's future and where market failures remain. This includes investments in the areas of energy, environment and climate action, social and human capital and related infrastructure, healthcare, research and innovation, cross-border and sustainable transport, as well as the digital transformation.

The EU has clear and unique assets which are crucial for investment: the Single Market, the most skilled population in the world, a high level of social and environmental protection, as well as stable, predictable, efficient and transparent legal systems. While there is no silver bullet that can ensure that the full potential for EU investments is exploited within only a few months’ time, the encouraging results delivered in a short period of time provide a sound basis for future policy initiatives on both the use of the EU budget and the regulatory environment.

ESO: Background information: Investment Plan for Europe: European Fund for Strategic Investments to be extended following successful first year http://www.europeansources.info/record/investment-plan-for-europe-european-fund-for-strategic-investments-to-be-extended-following-successful-first-year/

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