Brussels, 10/03/2015 (Agence Europe) - On Tuesday 10 March, the European Parliament carved the inter-institutional political agreement into stone on the draft regulation to set up an investment fund body responsible for the European long-term investment fund (ELTIF).
According to an EP press release, the rapporteur on this dossier, Alain Lamassoure (EPP, France) was delighted to be able to “launch a new efficient instrument that not only helps long-term investment, as supported under the Juncker plan, but which also helps to build union between the capital markets”. The Commissioner for Financial Services, Jonathan Hill, welcomed the setting up of this kind of fund, which would help “channel investment in infrastructure and other long-term projects, essential for a sustained recovery”.
The ELTIF will invest the majority of its capital in long-term assets that are clearly defined, for example, in projects or undertakings that have difficulty obtaining bank loans (see EUROPE 11206). They will have to respect information criteria, so that potential investors (pension funds, insurance companies, retail investors) are visible and are aware of the period of security for which they will not be able to recover their investments. At their request, retail investors can be reimbursed before the conclusion of a specific project if the ELTIF has sufficient liquid assets available.
The EP vote takes place on the day the Ecofin Council reaches a political agreement on the draft regulation to set up the European Fund for Strategic Investments (EFSI) and which seeks €315 billion in private investment over a three-year period (see other article). (Mathieu Bion)