ELTI Position Paper: Next Generation EU & Factsheets (Enterprises, Health, Renovation Wave & Territorial Development)
The European Council agreement in July 2020 marks a step forward in European construction. The European idea is thereby reinforced. It also sent contradictory signals with less means for European instruments managed by the European Commission.
Against this background ELTI invites the colegislators to take into account the following considerations mentioned its position paper and factsheets, published on 16 September 2020.
- Budget cuts to Financial Instruments such as InvestEU are a wrong signal since they are efficient promotional tools which help to save scarce public budget. The final set-up should ensure that a variety of Implementing Partners (IP) including the EIB Group and National Promotional Banks and Institutions (NPBIs), are equally in a position to finance projects and portfolios.
- The demand for more equity and quasi-equity instruments is even stronger across the EU economies. They should be available for projects as well as SME portfolios in order to effectively complement the existing debt instruments.
- The budget allocation for InvestEU should ensure that all IPs can use the EU guarantee for projects as well as portfolios. The overall guarantee amount available for each IP should justify the implementing costs. This might result in a higher budget share for other IPs compared to the 25% of the total budget currently foreseen.
- A provisioning rate of at least 40% will help to finance projects with more outreach to target groups and EU objectives. Going below this provisioning rate would effectively render the financing of start-ups as well as innovative projects under InvestEU impossible.
- The continuity in the implementation of InvestEU after 2023 has to be ensured.
- Any change in the 2019 Partial Agreement, as well as underlying documents (Investment Guidelines etc.), should be discussed with all IPs – EIB Group as well as other potential IPs.
- In order to maximise its impact and efficiency of the Just Transition Mechanism the instrument should be implemented similar to InvestEU by multiple implementing partners including NPBIs ELTI-members stand ready and look forward to working with the EC to address the huge challenges the EU is currently facing.