1. Benjamin Angel, Director, DG ECFIN
EU BUDGET FOR THE FUTURE MFF InvestEU programme
Benjamin Angel, Director, DG ECFIN
European Commission
Innovation enterprise Week

2. Structure of the presentation
1. Rationale
2. Key principles and objectives
3. InvestEU Fund
4. The EU guarantee
5. Governance
6. InvestEU Advisory Hub and InvestEU Portal

3. Address market gaps to sustain investment..
1. Rationale
Address market gaps to sustain investment..
By 2021, Member States are expected to have recovered their pre-crisis GDP level, with very few exceptions
But:
Persistent market gaps are still observed in different policy areas and hold back investment
Not enough to compensate years of underinvestment as a percentage of GDP
Not enough to finance needs in key sectors
Investment in EU as a % of the GDP (current prices)

4. …and equity markets are not fully developed
1. Rationale
…and equity markets are not fully developed
448 emerging current and exited tech companies valued > USD 500m…
Total annual Venture Capital funding by continent
(USD bn.)

5. Lessons learnt during current MFF
1. Rationale
Lessons learnt during current MFF
Increased number of different financial instruments brings risks of:
Fragmentation
Policy/financial overlaps
Multiplication of agreements
Multiplication of different fees

6. The programmes replaced
1. Rationale
The programmes replaced

7. Structure of the presentation
1. Rationale
2. Key principles and objectives
3. InvestEU Fund
4. The EU guarantee
5. Governance
6. InvestEU Advisory Hub and InvestEU Portal

8. InvestEU Fund key principles
2. Key principles and objectives
InvestEU Fund key principles
Single Fund: a single regulation and single agreement with implementing partners
Policy driven approach implemented through thematic policy windows
Budgetary Guarantee
Blending: harmonised combination rules
Complementarity between EU level and MS level
Simplification and Flexibility

9. The objectives 2. Key principles and objectives
The specific objectives of InvestEU Fund are organised according to four windows:
to support financing and investment operations in sustainable infrastructure;
to support financing and investment operations in research, innovation and digitisation;
to increase the access to and the availability of finance for SMEs and, in duly justified cases, for small mid-cap companies;
to increase the access to and the availability of microfinance and finance to social enterprises, support financing and investment operations related to social investment and skills and develop and consolidate social investment markets

10. Structure of the presentation
Rationale
2. Key principles and objectives
3. InvestEU Fund
4. The EU guarantee
5. Governance
6. InvestEU Advisory Hub and InvestEU Portal

11. InvestEU indicative proposed budget allocation
3. InvestEU fund
InvestEU indicative proposed budget allocation
Window
Budgetary guarantee
Mobilised investment (estimate)
Sustainable infrastructure
11 500
Research, Innovation and Digitisation
11 250
SMEs
Social investment and skills
4 000
50 000
TOTAL (EUR Million, in current prices)
38 000
The size of the EU guarantee proposed is EUR 38bn. and the provisioning rate 40 %, i.e. EUR 15.2 bn needed for the provisioning (EUR 14.2 bn. budg. Allocation + EUR 1bn. from reflows)
Budget for InvestEU Advisory Hub, InvestEU Portal and accompanying measures is proposed to be EUR 525m.
InvestEU is expected to mobilise more than EUR 650 billion of additional investment across Europe

12. InvestEU implementing partners
3. InvestEU fund
InvestEU implementing partners
InvestEU Fund backs the financial products provided by the implementing partners.
The procedure to choose implementing partners follows the provisions of the FR, which opens eligibility to;
EIB Group (privileged partner, exp. volume ~ 75%)
Other IFIs (EBRD, COE Bank..)
National Promotional Banks and Institutions
Other entities fulfilling the criteria laid down in the FR in Art. 62.1

13. Structure of the presentation
Rationale
2. Key principles and objectives
3. InvestEU Fund
4. The EU guarantee
5. Governance
6. InvestEU Advisory Hub and InvestEU Portal

14. The two compartments 4. The EU guarantee EU compartment MS compartment
Fosters EU level action and tackles EU level market gaps
Consists of four policy windows
Budgetary guarantee size of EUR 38bn, provisioned at 40%
Guarantee is not geographically ring-fenced
Fosters MS level action and tackles local level market gaps
On a voluntary basis by MS can allocate amounts to provision the MS compartment from ERDF, ESF+, EMFF, EAFRD or cohesion fund
Established at the level of each policy window; 1MS = 1sub-compartment
Based on a specific contribution agreement defining size, provisioning, contingent liability…
Contributions are geographically ring- fenced
InvestEU rules apply
InvestEU
Fund

15. EU Guarantee: conditions (1/3)
4. The EU guarantee
EU Guarantee: conditions (1/3)
According to Art. 209 of FR, the EU guarantee has to:
Address market failures or sub-optimal investment situations
Provide support only to final recipients that are deemed economically viable according to internationally accepted standards
Achieve additionality by preventing the replacement of potential support and investment from other sources
Not distort competition in the internal market and be consistent with State aid rules
Achieve a leverage and a multiplier effect, by mobilising a global investment exceeding the size of the guarantee including the maximisation of private investment

16. EU Guarantee: conditions (2/3)
4. The EU guarantee
EU Guarantee: conditions (2/3)
According to Art. 209 of FR, the EU guarantee has to:
Ensure that there is a common interest of the implementing entities or counterparts involved in the implementation in achieving the policy objectives defined
Foresee a remuneration that is consistent with the sharing of risk
If remuneration of the implementing entities or counterparts involved in the implementation is due, it has to be performance based
Finance the areas eligible for financing or investment operations under the appropriate window
Finance operations consistent with the investment guidelines

17. EU Guarantee: conditions (3/3)
4. The EU guarantee
EU Guarantee: conditions (3/3)
In addition, other conditions apply to the EU guarantee:
Finance the areas eligible for financing or investment operations identified in Annex II
Finance operations which are consistent with the investment guidelines
Target at least 50 % of the investment under the sustainable infrastructure policy window contribute to meeting the Union objectives on climate and environment. Overall, 30% target for climate and environment for InvestEU as a whole.

18. Structure of the presentation
Rationale
2. Key principles and objectives
3. InvestEU Fund
4. The EU guarantee
5. Governance
6. InvestEU Advisory Hub and InvestEU Portal

19. Current situation Implementing Partners EEEF
Other TA initiatives
- H2020: City Facility (ENER/ EASME) & Islands Facility (ENER/ Ext consultants)
- COSME: Smart Specialisation Platform (GROW/ Ext consultants)
EEEF
Investment Plan for Europe
Connecting Europe Facility
EEEF
Fund Governance
ENER
EFSI
Investment Committee
ECFIN
and
Relevant
DGs
Risk
Sharing
Debt
Instrument
Steering Committee
MOVE
Technical Assistance Facility
Steering Board
ENER
Implementing Partners
Financial products and programmes
Loans, guarantees, equity, investment platforms, technical assistance
Equity
Instrument
Fund Governance
EIB Group
Inter-service Group
CNECT
EIAH
CEF Programme
Support Actions
ECFIN
Coordination Committee
Project Promoters/ Beneficiaries
Project
Owners/
Beneficiaries
COSME
GROW
Loan
Guarantee
Facility
Horizon 2020
Steering Committee
RTD
External consultancy/ Fund Management
InnovFin
Equity
Equity
Facility
Steering Committee
Steering Committee
Leadership in ICT
JOINT
Executive agency
ELENA
Risk finance for investing R&I
ENER
EaSI
Steering Committee
Steering Committee
EMPL
MOVE
µfinance & social entrepreneurship
Capacity Building
Investments
Steering Committee
Instrument
Technical Assistance
EFSI top-up
Lead DG(s)
Delegation Agreement
Direct Management
FPA/SGA
InnovFin
Loan
Services
SME Guarantee
Steering Committee
Microfinance &
Social Entreprise Guarantees
EaSI Technical Assistance
R&I Facility
LIFE
CLIMA
PF4EE
Steering Committee
InnovFin
Advisory
ERASMUS+
Support Facility
Steering Committee
EAC
Student loan
Guarantee
Facility
Steering Committee
ENV
Creative Europe programme
NCFF
Steering Committee
Current situation
CCSG
Guarantee
Facility
Support Facility
Steering Committee
CNECT

20. How will it work: direct financing by Implementing Partner
5. Governance
How will it work: direct financing by Implementing Partner

21. Structure of the presentation
Rationale
2. Key principles and objectives
3. InvestEU Fund
4. The EU guarantee
5. Governance
6. InvestEU Advisory Hub and InvestEU Portal

22. InvestEU Advisory Hub 6. InvestEU advisory
Provides advisory support for the identification, preparation, development, structuring, procuring and implementation of investment projects, or enhance the capacity of promoters and financial intermediaries to implement financing and investment operations
Replaces 12 advisory bodies + EIAH
Single point of entry
Support to establish investment platforms
InvestEU
Advisory Hub
services:
Available under each
policy window +
Local presence
Assistance during the entire project life-cycle
Leveraging local knowledge
Supporting capacity building for promoters and authorities
Promote sectorial and geographical diversification
Facilitate project development
Support to project origination
Facilitate aggregation of small projects
Market making activities

23. The advisory programmes replaced
6. InvestEU advisory
The advisory programmes replaced
Islands
Facility
Smart
Specialisation
Platform for
Industrial modern.
CEF
(through
JASPERS)
InvestEU
Advisory
Hub
EIAH
City Facility
Innovfin
Advisory
NCFF support
facility
EEEF technical
assistance
H2020
(EE11 PDA)
EaSI Technical
Assistance
PF4EE
Expert Support
Facility
European
Local Energy
Assistance
CEF Programme
Support Actions

24. InvestEU Portal 6. InvestEU portal
Continues the current investment portal under InvestEU
Database will continue to be on-line and publicly available
Not a pre-condition for financing, not a guarantee of financing
Provides visibility
to investors and
potential investors
on pipelines
Consistency check
with EU laws
and policies
Better link to the
InvestEU pipeline
(implementing partners to
examine projects deemed
consistent falling
within their geographic
and activity scope)

25. Thank you!
Questions?