Tuesday

5th Mar 2024

EP gives final approval to investment fund

  • The EIB has earmarked R&D among first projects (Photo: Brookhaven National Laboratory)

The European Parliament gave overwhelming approval to the creation of a European investment fund in a plenary vote on Wednesday evening (24 June).

It passed by 464 votes, against 131, with 19 abstentions.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The fund is the European Commission's flagship programme to create jobs and get the European economy back on the road.

Commission president Jean-Claude Juncker proposed it soon after he took office in November last year.

Six months later, MEPs and national governments negotiators reached a compromise on the details of the instrument, paving the way for Wednesday’s final approval.

The fund, which is hoped to trigger €315 billion in investments, is based on a €16 billion guarantee from the EU, and €5 billion from the European Investment Bank (EIB).

One sticking point was where the guarantee money would come from.

The commission proposed taking €6 billion from two existing EU funds: Horizon 2020 (for research & development), and Connecting Europe Facility (for infrastructure).

MEPs were against this idea, but only managed to lower the contribution from those two funds by €1 billion.

Centre-left Belgian MEP Kathleen Van Brempt defended the compromise as an “honourable” one, but said it's “very painful” that the investment fund will still take €5 billion out of the two existing projects.

“You must bear in mind that next year and future years, we are going to drive a very hard bargain, because we want that money back”, she added.

Budget commissioner Kristalina Georgieva said the fund had to be set up in a “very tight budget environment” and needs “very tough trade-offs”.

Finnish Liberal MEP Nils Torvalds said that while the commission and the parliament “share the same values”, this was not true for the EU Council, the body representing member states.

“Georgieva said she'll turn every stone to find money. As soon as she finds something, the greedy hand of the council will try to get that money. … The very first problem we had with the process was that there was no new money, no way of getting the member states out of their corner”, noted Torvalds.

Jobs commissioner Jyrki Katainen, who has been touring the EU the past months to sell the fund idea, also praised the speed between the dates of proposal and adoption.

“I would like to spread the same spirit of 'delivering fast' to [other] areas," he said, referring to plans for a digital single market and an energy union.

Belgium's Van Brempt isn't the only MEP with gripes against the Juncker fund.

German far-left MEP Fabio De Masi called it a “placebo” for “sick man Europe”.

Italian MEP Marco Zanni, of the eurosceptic Five Star Movement, said the fund “is socialising the losses and privatising the profits”.

For its part, the EIB has already earmarked money for four projects: in the healthcare R&D sector in Spain; for an airport in Croatia; for 14 healthcare centres in Ireland; and for a steel pipe company in Italy.

Katainen previously said that, if things go well, the fund should be “up and running” in autumn.

Juncker fund gets political go-ahead

The EU plan for a €315bn fund to create jobs took final shape on Thursday, as negotiators agreed how it should operate and how to choose investment projects.

Juncker fund: €50bn mobilised so far

The flagship EU investment fund has mobilised so far €50 billion in investment, says the president of the European Investment Bank.

EU supply chain law fails, with 14 states failing to back it

Member states failed on Wednesday to agree to the EU's long-awaited Corporate Sustainable Due Diligence Directive, after 13 EU ambassadors declared abstention and one, Sweden, expressed opposition (there was no formal vote), EUobserver has learned.

Opinion

The six-hour U-turn that saw the EU vote for austerity

The EU's own analysis has made it clear this is economic self-sabotage, and it's politically foolish three months from European elections where the far-right are predicted to increase support, writes the general secretary of the European Trade Union Confederation.

Opinion

Why are the banking lobby afraid of a digital euro?

Europeans deserve a digital euro that transcends the narrow interests of the banking lobby and embodies the promise of a fairer and more competitive monetary and financial landscape.

Latest News

  1. Rafah invasion — a red line for EU on Israel?
  2. EU must overhaul Africa trade offer to parry China, warns MEP
  3. EU watchdog faults European Commission over Libya
  4. Hungary's Ukrainian refugees in two minds as relations sour
  5. The six-hour U-turn that saw the EU vote for austerity
  6. Defence, von der Leyen, women's rights, in focus This WEEK
  7. The farming lobby vs Europe's wolves
  8. EU socialists fight battle on two fronts in election campaign

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Stakeholders' Highlights

  1. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  2. UNOPSFostering health system resilience in fragile and conflict-affected countries
  3. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.
  4. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  5. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  6. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA

Join EUobserver

EU news that matters

Join us