Thursday

29th Jun 2017

Juncker fund: €50bn mobilised so far

  • Projects include offshore wind farm projects, installation of smart meters in homes, and motorways. (Photo: Kim Hansen)

The flagship EU investment fund has mobilised so far €50 billion in investment, the president of the European Investment Bank (EIB) said Thursday (14 January).

“That is 16 percent of the objective of the €315 billion,” the EIB's Werner Hoyer said at a press conference in Brussels.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

  • Hoyer: "quite optimistic" (Photo: EIB)

The fund was announced by EU Commission president Jean-Claude Juncker at the beginning of his mandate in 2014, and is his administration's main tool to get the European economy back up and running.

It will consist of €21 billion in guarantees, from the EU budget (€16 billion) and the EIB (€5 billion).

The key attribute of the fund is that by providing guarantees for projects that are otherwise deemed too risky, it is expected to pry loose additional public and private investment, which lenders are hesitant to provide without the fund's involvement.

Juncker announced the investment is to be multiplied by a factor 15.

So far, the fund, operating through the EIB and its sister organisation, the European Investment Fund (EIF), has not been able to reach that multiplier.

The EIB has committed €5.7 billion to 42 projects and mobilised €25 billion, a multiplier of almost 4.4.

The EIF had a higher multiplier rate. It committed €1.8 billion and also mobilised €25 billion – a multiplier of almost 14.

'Not relaxed but optimistic'

EIB secretary-general Klaus Tromel explained the disparity between the EIB and the EIF multipliers.

“EIB predominantly works with the final project promoters directly, but EIF predominantly works through intermediaries,” said Trömel, adding the EIF is a “fund of funds”.

“Hence, at the level of the fund that EIF supports, there will be a multiplier once again.”

Despite the lower than announced multiplier for the first projects, Hoyer said the multiplier effect must be measured after the full duration of the plan.

“We would not say a precise target for six months or twelve months; we have a precise target for [after] three years,” noted Hoyer.

“It's going to be a very big challenge. But on the other hand, after the experiences we've had after these first six months … I'm optimistic this multiplier can be reached on the basis of enough good projects.”

“I'm not relaxed, I'm never relaxed when these challenges are so big, but I'm quite optimistic. Every indication for the time being is there,” the president added.

While the Juncker fund officially only began operating as of 1 January this year, the EIB was asked by governments to get started with approving projects in 2015, before the governance structure was fully set-up.

Half of the approved projects so far have been in the environmental and climate sector. Examples include offshore wind farm projects, the installation of smart meters in homes, and motorways.

Focus

EU and China move to fill US void

At a summit in Brussels, EU and Chinese leaders will attempt to deepen ties on trade and climate as US president Trump plans to pull out of the Paris climate deal.

News in Brief

  1. EU parliament adopts mandate for 2018 budget talks
  2. EU commission launches pan-EU pension plan
  3. EU eases police access to databases
  4. Schulz calls for ban of Erdogan rally
  5. Trump to celebrate Bastille Day with Macron in Paris
  6. EU extended Russia sanctions until 2018
  7. Netherlands partially liable for Srebrenica massacre, court rules
  8. Cyprus reunification talks resume in Switzerland

Stakeholders' Highlights

  1. UNICEFNarrowing the Gaps: The Power of Investing in the Health of the Poorest Children
  2. World VisionEU, Young Leaders and Civil Society Join Forces to End Violence Against Girls
  3. EU2017EEGet the Latest News from the 2017 Estonian EU Council Presidency @EU2017EE
  4. International Partnership for Human RightsEU-Kyrgyzstan Human Rights Talks Should Insist on Ending Reprisals Against Critical Voices
  5. European Free AllianceEFA Is Looking for a New Intern
  6. Malta EU 2017Conservation of Atlantic Tunas: International Measures Become EU Law
  7. European Healthy Lifestyle AllianceCan Statin Therapy Interfere With a Physically Active Lifestyle?
  8. EPSUOn Public Services Day, Stop Austerity! Workers Need a Pay Rise!
  9. EGBAOnline Gambling: The EU Court Rejects Closed Licensing Regimes In Member States
  10. World VisionFaces of Today, Leaders of Tomorrow: Join the Debate on Violence Against Girls - 29 June
  11. ECR GroupThe EU Must Better Protect Industry from Unfair Competition
  12. Malta EU 2017Better Protection for Workers From Cancer-Causing Substances