Aiming to fortify the EU economy and at the same time protect and create jobs, the European Parliament approved this week the new InvestEU funding program.
InvestEU will provide long-term funding towards recovery with a focus on investment and innovation.
SMEs with viable business models contributing to long-term EU policy objectives are among the first to benefit from the funding. Member states will also have the option to tap into InvestEU to implement their recovery and resilience plans.
With a budgetary guarantee of 26.2 billion euros, InvestEU will provide access to private and public funds to support investments and create jobs.
The overall investment is estimated at more than 372 billion euros across the EU, to be channeled into climate objectives and digital transformation.
More specifically, the program will focus on sustainable infrastructure (38 percent); research, innovation, and digitization (25 percent); SMEs (26 percent); and social investment and skills (11 percent).
“InvestEU will be vital for supporting a more resilient and sustainable economy and make EU funding simpler to access and more effective at a time when it is most needed,” said Valdis Dombrovskis, executive vice-president for an economy that works for people.
SMEs facing significant risks due to the Covid-19 crisis will be able to tap into InvestEU scheme capital for support.
The InvestEU guarantee will be open to the EIB group and also to multiple implementing partners, including international financial institutions and national promotional banks and institutions. This will facilitate a rapid deployment of the funds and ensure local outreach.
The program must first be approved by the European Council, before the presidents of the ECOFIN Council and the European Parliament can sign it.