News from 21-04-2015

Five NEFI members to contribute to the success of the EU Investment Plan


Today Poland became the latest Member State to announce that it will contribute €8 billion to projects to be financed by the European Fund for Strategic Investments (EFSI), which is at the heart of the €315 billion Investment Plan for Europe.

Poland is now the sixth country, and fifth NEFI member country, to announce a contribution through its National Promotional Bank, BGK. In February, Germany announced that it would contribute €8 billion to the Investment Plan through KfW. Likewise, Spain announced a €1.5 billion contribution through Instituto de Crédito Oficial (ICO). In March, France declared a €8 billion pledge through Caisse des Dépôts (CDC) and Bpifrance and Italy said it will contribute €8 billion via Cassa Depositi e Prestiti (CDP). In April Luxembourg announced that it will contribute €80 million via Société Nationale de Crédit et d’Investissement (SNCI).

The European Commission has recognised that National Promotional Banks have a crucial role to play in getting Europe investing again. These institutions have the expertise to carry out the Investment Plan, and they often ensure the most efficient use of public resources.

The economic crisis brought about a sharp reduction of investment across Europe. That is why collective and coordinated efforts at European level are needed to reverse this downward trend and put Europe on the path of economic recovery. Adequate levels of resources are available and need to be mobilised across the EU in support of investment. There is no single, simple answer, no growth button that can be pushed, and no one-size-fits-all solution. The Commission is setting out an approach based on three pillars: structural reforms to put Europe on a new growth path; fiscal responsibility to restore the soundness of public finances and cement financial stability; and investment to kick-start growth and sustain it over time. The Investment Plan for Europe is at the heart of this strategy.