Brussels, 19/01/2015 (Agence Europe) - To encourage member states to double the amount of structural funds invested as innovative financial instruments and not subsidies, the European Commission has set up the - Fi-Compass -, advisory hub service, in cooperation with the European Investment Bank (EIB). The increased focus on this kind of funding is part of the new European investment plan.
Investment plan. During a conference on the use of financial instruments on Monday 19 January, the European Commissioner for Investment, Jyrki Katainen, explained that European Fund for Strategic Investments (EFSI) could make a significant contribution to helping underpin the Investment Plan. The Commission is encouraging member states and local authorities to use financial instruments such as loans and guarantees under the 2014-2020 programming period.
A tenth to come from EFSI. His counterpart, Commissioner for Regional Development, Corina Cretu, mentioned the possibility of using this method to earmark 10% of cohesion funds (around €30 billion) and subsequently unlock €40-70 billion in additional funding from the private sector. According to the Commissioner, this multiplier effect would become the “philosopher's stone” that all the public authorities are seeking in a context of limited public resources. Cretu also appreciated the fact that project sponsors would one day have to pay back the support they receive which meant that they had a “strong incentive to construct the best project possible”.
Fi-Compass. She did, however, acknowledge that not all the managing authorities had sufficient capacity for proceeding in this way. Commissioner Katainen promised that they would not be abandoned because the Commission and the EIB would set up a technical assistance hub to provide support to public and private promoters. According to the Commissioner, “We want to fast track the work to set up a technical hub which will provide a one stop shop for advice and support for potential investors”. This Fi-Compass hub was launched on Monday 19 January and contains a user's guide, information and online training modules. Later in the year, it will also contain “multiregional” assistance that will help bring the managing authorities and financial institutions closer together when tackling investment priorities shared by the regions in different countries. (MD)