The economic and financial crisis has left deep scars in many EU member states. Financial consolidation combined with
weak economic growth has resulted in the level of investment in the EU as a whole remaining low after the crisis. In
light of this, the Committee welcomes initiatives by the Commission to increase investments in the EU in order to
contribute to higher growth, increased employment and strengthened competitiveness. But considering the fact that
public finances are severely strained in many EU member states, it is also justifiable that the plan focuses on stimulating
private investments. At the same time, in the opinion of the Committee it is important to have realistic expectations. The
investment plan can hardly solve the entire economic situation in the EU, but it can constitute an important complement
to other measures to strengthen competitiveness and growth and contribute to sustainable development. However, in
addition to the investment plan, other things are needed including continued structural reforms both at EU level and the
national level to enable the recovery of the European economy to continue.
Of particular importance to improve the investment climate
Of the three parts of the investment plan, it is the part concerning measures for an improved investment climate that the
Committee sees as particularly important. The Committee supports the ambition to improve the investment climate
throughout the EU through better legislation and simpler regulations, as well as through a deepening of the single market,
particularly the digital single market. It is also important to continue working for open and free world trade.
Within the framework of an improved investment climate, the Commission has put forward the establishment of a
Capital Markets Union as a more long-term factor to reduce the fragmentation of the EU's finance market and to broaden
funding to small and medium-sized enterprises. The Commission also recently presented a green paper on the Capital
Markets Union. The Committee expresses its general support for the initiative to remove obstacles to cross-border
investments and facilitate financing possibilities for companies. The Committee intends to develop its view of the Capital
Markets Union later this spring in a separate statement on the green paper.
Minimising risks for the EU budget
According to the communication, the plan is based on the assumption that no changes are to be made to the multiannual
financial framework and that the EIB's capital will not increase. The Committee would like to underline the importance
of keeping to this assumption and recommends a restrictive and responsible approach regarding the EU budget and the
financing of various activities. It is important to safeguard sound public finances and ensure that the EU's multi-annual
financial framework for 2014–2020 is respected. The Committee would like to emphasise that any possible increase in
risk regarding the EU budget that the investment plan may cause must be minimised. If the project fails, so that the
guarantee commitment connected to the EU budget is redeemed, it is of central importance that this does not lead to
increased expenses for the member states, but that it is instead financed by means of reprioritisation within the existing
EU budget.
Of the total guarantee from the EU budget for the EFSI of 16 billion euros, 6 million euros are covered by programmes
that have already been decided within the multiannual financial framework, while 2 billion euros will be covered by
margins in the EU's annual budget. A prerequisite for the latter source of funding is that there are sufficient margins
between the implemented annual budget and the budgetary ceiling. The Committee notes a certain risk in including
margins in the budget. Sufficient margins are in the opinion of the Committee of central importance for good budgetary
discipline and are for dealing with unforeseen circumstances. The remaining 50 per cent of the guarantee, that is 8
billion euros, should, according to the Commission's proposal, be guaranteed by the margin between the budgetary limit
and the limit for own resources. As stated in the communication, the latter method of financing already exists today and
is used for example for balance of payments support and for the European Financial Stabilisation Mechanism. The
Committee has understood that the scope for further guarantee commitments below the "own resources" ceiling is very
limited, and considers that the possible consequences of any further guarantee commitments should be clarified.
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Governance and selection of projects on objective grounds
According to the communication, the EFSI is to support strategic investments of European significance in such things
as infrastructure, education, research and innovation, as well as renewable energy. According to the communication, no
thematic or geographical allocations may be determined in advance, but the projects are to be chosen on their own merits.
Furthermore, an independent investment committee is to approve concrete projects on the basis of their viability and
ensure that public support does not exclude or displace private investments. The fund's governance structure is given in
more detail in the proposal for a regulation for the fund.
The investment plan should, according to the Committee, be able to contribute to a transition to a green resourceefficient economy, for example by means of sustainable investments in the energy, environmental and climate field
with a focus on innovative technologies. Part of the EU guarantee for the EFSI is backed up by funds that have already
been decided from the research programme Horizon 2020 and it is important in the view of the Committee that the
investments financed by the EFSI can also include research, development and innovation.
As far as governance is concerned, the Committee would like to emphasise that the role of the EIB should be a central
one and that the forms of governance must not circumvent the EIB's autonomy. In addition to this, it is important that
the project is scrutinised and assessed on transparent and objective grounds. It should in the Committee's view be made
clear how this governance is to function in practice and how the interplay between the two control bodies and the EIB
is to function.
Safeguarding the Stability and Growth Pact
According to the communication, it should be possible for the member states to contribute capital to the investment fund.
The communication further states that in connection with the evaluation of public finances within the framework of the
Stability and Growth Pact, the Commission intends to express its support for such contributions. Here, the Committee
would like to emphasise the importance of safeguarding the Stability and Growth Pact, particularly in view of the fact
that sustainable finances are a crucial factor for the investment climate. The Stability and Growth Pact aims to secure
sound public finances as a means to ensure price stability and sustainable growth. The Committee considers that the
economic and financial crisis has clearly demonstrated the importance of a stable regulatory framework for finance
policy. By means of the legislative packages on stronger economic governance 2011-2013 (known at the "six-pack" and
the "two-pack"), the Pact has been strengthened based on the experiences gained from the financial crisis.
The investment plan should be evaluated after 2017
In view of the fact that the financing of the fund is to continue until 2017, the Committee considers that the need for the
arrangement and its appropriateness should be evaluated after this period. An evaluation of this type should for example
show to what degree the measures in the investment plan are judged to have resulted in increased investments and to
what extent investment levels have been affected by – for example – a normal business cycle. It should also become
clear whether there have been displacement effects.
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