What is the European Fund for Strategic Investments (EFSI)?
EFSI is an initiative launched jointly by the EIB Group - European Investment Bank and European Investment Fund - and the European Commission to help overcome the current investment gap in the EU by mobilising private financing for strategic investments. EFSI is one of the three pillars of the Investment Plan for Europe that aims to revive investment in strategic projects around Europe to ensure that money reaches the real economy.
EFSI should unlock additional investment of at least EUR 315bn over a three year period.
How does EFSI work?
EFSI is a EUR 16 billion guarantee from the EU budget, complemented by a EUR 5 billion allocation of the EIB’s own capital. EFSI has been integrated into the EIB Group and projects supported by EFSI are subject to the normal EIB project cycle and governance.
In addition, EFSI has its own dedicated governance structure which has been set in place to ensure that investments made under EFSI remain focused on the specific objective of addressing the market failure in risk-taking which hinders investment in Europe. In doing so, EFSI will also increase the volume of higher risk projects supported by the EIB Group.
What does EFSI focus its activities on?
With EFSI support, the EIB Group will provide funding for economically viable projects where it adds value, including projects with a higher risk profile than ordinary EIB activities. It will focus on sectors of key importance where the EIB Group has proven expertise and the capacity to deliver a positive impact on the European economy, including:
- Strategic infrastructure including digital, transport and energy
- Education, research, development and innovation
- Expansion of renewable energy and resource efficiency
- Support for smaller businesses and midcap companies
Where will EFSI support operations?
EFSI is demand driven and will provide support for projects everywhere in the EU, including cross-border projects. There are no geographic or sector quotas. Projects will be considered based on their individual merits.
For information on how to apply for a loan under EFSI see our page on How does a project get EFSI financing?
Years of crisis have posed a threat to Europe’s potential for innovative growth and dulled our competitive edge. Competitiveness relies on investment. In Europe, good projects currently struggle to find investment. Money is available in the system but economic uncertainty stops many investors from taking risks. The Investment Plan for Europe is putting our money back to work – for the benefit of all Europeans.