EFSI

Investing where there are gaps, not following country or sector quotas, is one of the guiding principles for EFSI. To make best use of scarce resources the initiative needs to be market-driven rather than shepherded by politicians picking beneficiaries around a conference table in Brussels or other European capitals. A thorough assessment by EIB experts and members of the independent EFSI Investment Committee guarantees that the financing goes to viable, yet often challenging projects with true added value for Europe.

Between 2007 and 2013 the EU experienced a massive decline in investment. One of EFSI’s main objectives is to stimulate investment, especially from the private sector. Enabling the EIB Group to take higher risk in a project, the initiative shortens the gap between what private investors may consider economically viable and unviable. With great success: two-thirds of the expected investment mobilised by EFSI come from private sources. This represents almost 40 percent of the estimated investment gap in 2017.

All across the EU different sectors suffer from investment gaps. Still, some countries are in higher need of investment than others. Even though no country quotas apply, EFSI backing has predominantly benefitted the regions hit hardest by the crisis: measured in relation to the size of the economy, Greece, Portugal and Spain have, for a long time, featured among the top ten in expected mobilised EFSI investment – as have Estonia, Bulgaria and Poland. In addition, calculations of the EIB and the EU's Joint Research Centre point to the fact that the direct impact on jobs and GDP-growth is particularly pronounced in crisis-hit countries.

Often, EFSI-backed projects are highly innovative, undertaken by small companies without a credit history, or they pool smaller infrastructure needs by sector and geography. Supporting such projects required the EIB Group to develop new financing products. From venture debt with equity features to investment platforms, investment at proof-of-concept phase or in payment-by-result schemes, products are evolving to meet the changing needs of specific clients, sectors or countries. Not only has this changed the DNA of the Bank, it also revolutionised the way Europe finances its priorities.