European Fund for
Strategic Investments (EFSI)

The European Fund for Strategic Investments (EFSI), one of the three pillars of the Investment Plan for Europe, is an initiative launched in 2015 jointly by the EIB Group and the European Commission to help overcome the current investment gap in the EU. In December 2017, EFSI’s investment period was extended to end-2020 for approvals and end-2022 for the respective signatures. The financing capacity of EFSI was also increased: EFSI is a EUR 26 billion guarantee from the EU complemented by a gradual EUR 7.54 billion contribution from the EIB. The total amount of EUR 33.54 billion aims to support, by end-2020, at least EUR 500 billion of public and private investment and increased access to financing for entities with up to 3 000 employees. The original objective was to support EUR 315 billion of investment by mid-2018.

EFSI allows the EIB Group to take an enhanced catalytic role, increasing its capacity to mobilise additional investments. It can accelerate the decision to finance a project when risk aversion would otherwise have held investors back. An early intervention by the EIB using lending backed by EFSI can trigger additional resources from other investors who can put in funds with a senior position.

EFSI is managed by the EIB Group, with the EIB managing the implementation of the Infrastructure and Investment Window (IIW), and the EIF the implementation of the SME Window (SMEW). Under IIW, the EIB targets economically viable, generally high-risk projects within the EU or cross-border projects concerning countries within the scope of European Neighbourhood Policy as defined in Article 8 of the EFSI Regulation[1] that contribute to the objectives set in the EFSI Regulation. Under SMEW, the EIF provides intermediated financial support to entities with up to 3 000 employees, with a particular focus on SMEs and small mid-cap companies with fewer than 500 employees. All projects under EFSI are additional, meaning that they address market failures or sub-optimal investment situations and could not have been carried out during the period in which the EU guarantee can be used, or not to the same extent, by the EIB, the EIF or under existing Union financial instruments, without EFSI support.

[1] Regulation (EU) 2017/2396 of 13 December 2017 amending Regulations (EU) No 1316/2013 and (EU) 2015/1017.