REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Comprehensive Report to the European Parliament and the Council on the use of the European Fund for Strategic Investments (EFSI) EU guarantee and the functioning of the European Fund for Strategic Investments (EFSI) guarantee fund
1. The European Fund for Strategic Investments (EFSI) is a pillar of the Commission’s Investment Plan for Europe. EFSI was established, along with the European Investment Advisory Hub and the European Project Investment Portal, with the aim of kick-starting investment through the mobilisation of private finance. Management of EFSI is undertaken by the European Investment Bank Group (EIBG).
2. EFSI operates as a ‘first loss guarantee’, covering defaults on the EFSI portfolio up to the maximum size of the EFSI Guarantee Fund (“the Fund”) in cases when such a call is greater than the funds at the disposal of the EIB on the EFSI Account .
3. The original EFSI Regulation established a €21.0 billion (£18.7 billion ) guarantee fund: €16.0 billion (£14.3 billion) from the EU budget (“the EU Guarantee”) complemented by an allocation of €5.0 billion (£4.5 billion) from the Group’s own capital. The EFSI Regulation was amended at the end of 2017 to extend its duration and size. EFSI will now run until the end of 2020, with a €26.0 billion (£23.2 billion) guarantee from the EU budget and €7.5 billion (£6.7 billion) from the EIBG’s own resources. Its aims to mobilise €500 billion of public and private investment by 2020. The Fund is maintained at a specific percentage of the total amount of the obligations under the EU Guarantee: currently 35%.