News from 2015-09-17 / Group, Domestic Promotion
European Fund for Strategic Investments (EFSI) launched in Germany
The first German project from the European Fund for Strategic Investments (EFSI), also known as the "Juncker fund", has been launched today at the German Federal Ministry for Economic Affairs and Energy.
The project aims to add further impetus to promoting start-ups in Germany. To this end KfW's existing start-up programme "ERP Start-up Loan – StartGeld" is to be broadened in cooperation with the European Investment Fund.
At the launch of the project Matthias Machnig, State Secretary at the German Federal Ministry for Economic Affairs and Energy welcomed Member of the Executive Board of KfW, Dr Ingrid Hengster, Vice-President of the European Investment Bank (EIB), Ambroise Fayolle, Chief Executive of the European Investment Fund (EIF), Pier Luigi Gilibert and Director of the General Directorate for Growth at the European Commission, Kristin Schreiber.
State Secretary Machnig said, "Investment activity in Germany and Europe has been subdued for years. As part of its investment strategy the German Federal Government has already initiated numerous measures to stimulate private and public investments in Germany. On the European level the German Federal Government is contributing EUR 8 billion to the Juncker fund via KfW. That's why we are particularly pleased that we can strengthen an important instrument for setting up new companies with today's expansion of the "ERP Start-up Loan – StartGeld" programme."
Dr Ingrid Hengster added, "Start-ups are the drivers of growth, innovation and job creation. Through the EFSI we can now improve our support for even more start-ups and young enterpeneurs. As the first Juncker plan project in Germany, the cooperation with the EIF, which builds on established structures, can serve as a model for further projects. KfW as a promotional bank is ready and willing to participate in its implementation."
The EFSI fund, a joint initiative of the European Commission and the European Investment Bank, aims to mobilise additional investments in Europe totalling at least EUR 315 billion over the next three years. The German Federal Government plans to support the investment drive in Europe with approximately EUR 8 billion to be channelled through its promotional bank KfW. The funds will primarily flow into strategic investments in key areas such as infrastructure and innovation, in addition to promoting small and medium-sized enterprises by providing venture capital and guarantees. The fund is to be managed by the EIB and EIF.
The programme "ERP Start-up Loan – StartGeld" benefits from a guarantee issued under the EU's Competitiveness of Enterprises and SMEs programme (COSME). Thanks to the EFSI, loans totalling EUR 1 billion will be granted by 2018, supporting at least 15,000 start-ups and young enterprises in Germany.