Green Light for the Juncker Plan
By Ingemar Pongratz
We at Pongratz Consulting have been followoing the developments of the European Commission new approach to increase the availability for funding that European SME can use to invest or alternatively funds that can be used to invest in Infrastructure projects across the European Union.
The European Commission launched a plan called the European Fund for Strategic Investment (EFSI) or also known as the Juncker Plan.
EFSI aim to combine both public and private funding to create a 315 Billion EUR fund to support and improve the availability of funds for investment. The idea is that the vast majority of the 315 Billion EUR would be provided by private investors whereas the European Union and the European Central Bank would contribute 21 Billion EUR and thereby attract foreign investor so increase the available funds by a factor 15.
EFSI has been received critique both as many stakeholders doubt that the EU Commission calculations are unrealistic, but also because a the Horizon 2020 research funding scheme was expected to contribute with 2.8 billion EUR to EFSI.
However the European Commission and the European Parliament recently reached a compromise where the amount of funds from Horizon 2020 funding was reduced and in addition, the agreement include writing that the European Parliament will have the opportunity to influence key positions in the management of EFSI.
In addition, it was also decided that project which receive EU funding from EFSI will be selected in line with European Policy objective.
This agreement paved the way to EFSI being approved by the European Parliament and will likely be operational after the summer 2015.
It is for example interesting to note that for example China has expressed interest in EFSI and may join the programme.
We will follow this subject and inform our readers.
Ingemar Pongratz and Pongratz Consulting provide support to organizations interested in Horizon 2020 funding and other public funding sources for their projects. If you wish to contact us please use the Online Contact Form (redirects to Pongratz Consulting) or send an email to:
Ingemar.Pongratz (a) PongratzConsulting.com