KfW statement on the German Bundestag hearing of the EU Investment Plan
News from 2015-04-22
At the public hearing of the German Bundestag’s Committee on the Affairs of the European Union on 22 April 2015, KfW explained its position to the members of the Committee along with proposals for the EU Investment Plan (“Juncker Plan”) and the European Fund for Strategic Investments (EFSI). Between 2015 and 2017, KfW is planning to support the EU Investment Plan with the sum of roughly 8 billion EUR. This includes bilateral instruments such as global loans to other European promotional banks aimed at improving the financing of small and medium-sized enterprises (SMEs), intensifying securitisation activities, providing equity and growth capital for young technology companies (venture capital), structured finance as well as equity financing within the framework of investment platforms like Fonds Marguerite.
All in all, this potential support depends on the extent to which KfW projects are guaranteed by the EFSI. KfW believes that the Juncker Plan should not be limited to financing alone, but should aim to identify and dismantle regulatory barriers to investments in Europe. KfW has forged close ties with other national promotional institutions in Europe in recent years. The joint success and possibilities for national promotional institutions to get involved depend on EFSI requirements and legal framework conditions at EU level. Basic requirements include, in particular, unbureaucratic structures in managing the EFSI, which facilitate rapid implementation, flexibly designed instruments and appropriate conditions for reporting on them, as well as simplified aid schemes for financing under the EFSI that apply equally to the European Investment Bank (EIB) and the implementing national promotional institutions.