The EU has successfully concluded EFSI negotiations. The plan is to boost the sluggish economic recovery in the Euro zon
In a bid to face the current investment gap challenges head on, President of the European Commission, Jean-Claude Juncker, is determined to boost European investment through his initiative known as the Investment Plan for Europe. The Investment Plan initiative relies on three pillars: financing for private and public sectors, the selection of economically viable projects and the improvement of the conditions in the business environment. The plan aims to unlock 300 Billion Euro over the next three years. Additionally, a 21 Billion Euro fund rests on the financial pillar as ‘seed money’ to attract private and public sector investment – which is expected to speed up the process of economic recovery within the Euro zone.
After six months of being in the legislative process, recent developments in the Juncker Plan have led to the successful conclusion of the negotiations on the regulation for a ‘European Fund for Strategic Investments’, or EFSI. The Fund will be sustained by flexible contributions by Member States, the European Investment Bank, the general EU budget and other investment platforms.
This agreement has set the momentum for this colossal plan to begin financing projects in the months to come. This said, the European Commission also depends on the European Parliament and Council’s go-ahead in June. Upon approval, the investment plan will kick start long term investments and growth which are necessary for Europe.
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