Set up at the end of 2014 to shift the European Union’s policy priorities after the sovereign debt crisis, the ‘Juncker’ plan has achieved the goal of boosting mainly private investment by €500 billion by 2020, according to an ex-post evaluation unveiled on Tuesday 20 December.
By the end of 2021, nearly €100 billion of aid from the ‘European Fund for Strategic Investments’ (EFSI), the financial instrument of the ‘Juncker’ plan, was expected to mobilise more than €520 billion of investment, 72% of which was private.
The EFSI Fund is able to raise capital on the markets through a public guarantee based on the EU budget combined with a contribution from the European Investment Bank (EIB).
According to the authors of the evaluation, the EIB, which manages the EFSI Fund, has been able to “take on more risk” without changing its top financial rating and has managed to fill investment gaps in certain sectors and geographical areas. The European added value of this initiative is also demonstrated through the cross-border projects supported and the continental scale-up of local projects.
The ex-post evaluation indicates that, by 2025, the investments supported by the ‘Juncker’ plan will contribute to the creation of 2.1 million jobs and generate a 2.4% increase in GDP in the EU.
“An instrument such as the EFSI was relevant at its launch and remains relevant going forward, as Europe faces the need of massive investments to meet its policy objectives, address societal needs and achieve its climate ambitions, including the necessity to accelerate green transition and reduce dependence on Russia’s energy”.
For the period 2021-2027, the InvestEU programme has taken over from the ‘Juncker’ investment plan and operates on the same principle, with a public guarantee based on the EU budget to cover any losses incurred by risky projects.
See the ex-post evaluation of the EFSI Fund: https://aeur.eu/f/4rg (Original version in French by Mathieu Bion)