WHAT IS THE AIM OF THE REGULATION?
It establishes the InvestEU programme, comprising three building blocks:
- the InvestEU Fund, providing a European Union (EU) guarantee to support financing of investments in line with internal EU policies;
- the InvestEU Advisory Hub, supporting project development, access to finance and capacity-building assistance;
- the InvestEU Portal, giving visibility to projects seeking financing and information on investment opportunities.
KEY POINTS
The InvestEU programme’s general aim is to support financing that contributes to:
- competitiveness, including research, innovation, digitisation and scientific and technological advancement;
- economic growth, sustainability and employment;
- the green and digital transitions;
- social resilience and inclusiveness;
- culture, education and training;
- the integration of capital markets and a stronger internal market;
- economic, social and territorial cohesion;
- sustainable and inclusive recovery of the EU economy, including capital support for small and medium-sized enterprises (SMEs), after the COVID-19 crisis;
- supporting investments contributing to the objectives of the Strategic Technologies for Europe Platform (STEP), an initiative set up under amending Regulation (EU) 2024/795 that seeks to strengthen the EU’s sovereignty and security, enhance its competitiveness and reduce its strategic dependencies in three strategic technology fields: digital technologies and deep tech innovation, clean and resource-efficient technologies and biotechnologies.
InvestEU covers several policy areas (through four dedicated ‘windows’) to address market failures or suboptimal investment situations:
- sustainable infrastructure, ranging from transport, energy and digital connectivity to the circular economy and innovative technologies;
- research, innovation and digitisation, including product development and support for market enablers;
- financing for SMEs, including innovative companies and those in the cultural and creative sectors;
- social investment and skills, covering microfinance, social enterprises, health, gender equality, education, training and other social services.
InvestEU has a budgetary guarantee of €26.2 billion (in current prices) funded by NextGenerationEU resources and the multiannual financial framework (2021–2027). This amount corresponds to the EU compartment.
The guarantee can be increased by contributions from EU Member States, through Member State compartments, and non-EU countries. It is split as follows:
- €14.8 billion available to support the post-COVID-19 economic recovery under the timeline set up for the use of NextGenerationEU resources;
- €11.3 billion for the multiannual financial framework period (2021–2027).
The European Commission and the European Investment Bank Group (EIBG) form a partnership under which the EIBG implements 75% of the EU guarantee and has specific tasks in relation to the financial risk of the programme. National promotional banks and institutions and international financial institutions can take part in the programme.
The Commission will:
- select implementing partners1 in addition to the EIBG;
- conclude a guarantee agreement with each partner.
To qualify for InvestEU Fund support, financing and investment operations must:
- comply with various conditions set out in the EU’s financial regulation (Regulation (EU, Euratom) 2018/1046 – see summary);
- contribute to the EU’s policy objectives and fall under an eligible area under Annex II (energy, transport infrastructure, environment and resources, digital connectivity, research, development and innovation, digital technologies, SMEs, cultural and creative sectors, tourism, rehabilitation of industrial sites, sustainable land and water use, bioeconomy, social investment, defence, space, seas and oceans);
- not feature on the list of excluded activities in Annex V(B), such as gambling, tobacco, real estate, oil, fossil fuels or violations of human rights;
- be consistent with the investment guidelines.
The InvestEU Fund may also support projects and operations in non-EU countries participating in the programme.
The EU guarantee:
- may be used towards risk coverage for various types of financing (loans, guarantees, capital market instruments or other forms of credit) or equity or quasi-equity provided by the implementing partners either directly or indirectly through financial intermediaries;
- covers:
- debt: all outstanding principal and interest due to the implementing partner, restructuring losses and, under certain conditions, losses from currency fluctuations other than the euro,
- equity or quasi-equity investments: amounts invested and associated funding costs and losses from currency fluctuations other than the euro,
- funding or guarantees by an implementing partner to another financial institution in certain situations for amounts used and associated costs.
The regulation establishes a governance structure which consists of the following.
- The Advisory Board meets at least twice a year and advises the Commission and the Steering Board on the design of financial products, market developments, market conditions and market failures and suboptimal investment situations.
- The Steering Board provides strategic and operational guidance for the implementing partners, adopts the risk methodological framework and oversees the implementation of the InvestEU programme.
- The scoreboard contains various elements that implementing partners have to provide, such as a description of the proposed financing and impact of the investment, so that the Investment Committee can carry out an independent, transparent and harmonised assessment of requests for the use of the EU guarantee.
- The Investment Committee is a fully independent body of experts that examines the financing and investment proposals submitted under the four ‘windows’ and checks whether they meet the regulation’s conditions and whether they therefore can benefit from support under the EU guarantee.
- Policy checks are carried out by the Commission to confirm that proposed financing and investment operations from implementing partners, apart from the EIB, comply with EU law and policies.
Established by the Commission, the InvestEU Advisory Hub:
- provides advisory support to identify, prepare, develop, structure, procure and implement investment projects;
- helps project promoters and intermediaries to develop and originate projects;
- acts as a central point of entry, managed by the Commission, for project development assistance for public authorities and project promoters;
- is available to public and private project promoters, including SMEs and start-ups, public authorities, national promotional banks and institutions and financial and non-financial intermediaries.
Established by the Commission, the InvestEU Portal:
- is an easily accessible and user-friendly database providing relevant information on the published projects;
- provides a channel for promoters seeking financing to make their projects visible to potential investors.
The regulation establishes accountability, monitoring, evaluation and transparency requirements as follows.
- Accountability. The European Parliament or the Council of the European Union may ask the chairperson of the steering board to report on the InvestEU Fund’s performance and reply orally or in writing to questions.
- Monitoring and reporting. Annex III contains a detailed list of key performance and monitoring indicators. Implementing partners use these in their reports to the Commission, which in turn reports annually on the InvestEU programme’s performance. The EIBG reports annually on investment barriers.
- Evaluation. The Commission:
- will submit an interim evaluation report on the programme to the European Parliament and the Council by 30 September 2024;
- will present the two institutions with its final evaluation report, in particular on the use of the EU guarantee, by 31 December 2031 at the latest;
- will also send its conclusions of the evaluations to the European Economic and Social Committee and the European Committee of the Regions.
- Transparency. Implementing and advisory partners must acknowledge EU funding to their intermediaries and final recipients and when promoting their activities supported by the EU guarantee.
The regulation:
FROM WHEN DOES THE REGULATION APPLY?
It has applied since 1 January 2021.
BACKGROUND
- The InvestEU programme brings under one umbrella many different forms of EU financing. This makes funding for investment projects simpler, more efficient and more flexible and helps meet the EU’s twin goals of a green transition and digital transformation.
- The EU guarantee is used to leverage substantial private and public funds to contribute to Europe’s economic and social recovery and competitiveness by aligning investors with EU policy priorities.
- Member States may use InvestEU to implement part of their national plans under the Recovery and Resilience Facility.
- It is estimated that the EU guarantee could mobilise total investment across the EU of over €372 billion by 2027, of which 30% will meet climate objectives.
For more information, see:
KEY TERMS
- Implementing partner. An eligible counterpart, such as the EIB, the European Investment Fund, other international financial institution or a national financial institution or promotional bank with which the Commission has concluded a guarantee agreement.
MAIN DOCUMENT
Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, pp. 30–89).
Successive amendments to Regulation (EU) 2021/523 have been incorporated into the original text. This consolidated version is of documentary value only.
RELATED DOCUMENTS
Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (OJ L 57, 18.2.2021, pp. 17–75).
See consolidated version.
Commission Delegated Regulation (EU) 2021/1078 of 14 April 2021 supplementing Regulation (EU) 2021/523 of the European Parliament and of the Council by setting out the investment guidelines for the InvestEU Fund (OJ L 234, 2.7.2021, pp. 18–66).
Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions – The European Green Deal (COM(2019) 640 final, 11.12.2019).
Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, pp. 1–222).
See consolidated version.
Regulation (EU) 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments, the European Investment Advisory Hub and the European Investment Project Portal and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013 – the European Fund for Strategic Investments (OJ L 169, 1.7.2015, pp. 1–38).
See consolidated version.
