22nd Oct 2016

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.


Europe ready to tackle Greek debt relief

The Greek government has built and broadened alliances in EU institutions and member-states that acknowledge the need to restructure the debt and deliver another economic model for the eurozone.

News in Brief

  1. Canada and Wallonia end talks without Ceta deal
  2. Juncker hopes for Canada accord in 'next few days'
  3. Romania drops opposition to Ceta
  4. Difficulties remain on Ceta deal, says Walloon leader
  5. Brexit could lead to 'some civil unrest' in Northern Ireland
  6. ECB holds rates and continues quantitive easing programme
  7. Support for Danish People's Party drops, poll
  8. Spain's highest court overturns Catalan ban on bullfighting

Stakeholders' Highlights

  1. EFADraft Bill for a 2nd Scottish Independence Referendum
  2. UNICEFCalls on European Council to Address Plight of Refugee and Migrant Children
  3. ECTAJoin us on 9-10 November in Brussels and Discover the new EU Digital Landscape
  4. Access NowCan you Hear me now? Verizon’s Opportunity to Stand for Global Users
  5. Belgrade Security ForumMeaningful Dialogue Missing Not Only in the Balkans, but Throughout Europe
  6. EASPDJoin the Trip! 20 Years on the Road. Conference & Photo Exhibition on 19-21 October
  7. EuropecheEU Fishing Sector Celebrates Sustainably Sourced Seafood in EU Parliament
  8. World VisionWomen and Girls Urge EU Leadership to Help end Gender-based Violence
  9. Dialogue PlatformIs Jihadism Blind Spot of Western Intellectuals ? Wednesday 26 October
  10. Belgrade Security ForumGet the Latest News and Updates on the Belgrade Security Forum @BelSecForum
  11. Crowdsourcing Week EuropeMaster Crowdsourcing, Crowdfunding and Innovation! Conference 21 November - 10% Discount Code CSWEU16
  12. EJCEU Parliament's Roadmap for Relations with Iran a Massive Missed Opportunity