Luxembourg has announced that it will contribute €80 million to projects benefiting from finance by the European Fund for Strategic Investments (EFSI), which is the core element of the €315 billion Investment Plan for Europe. The contribution will come via its National Promotional Bank Société Nationale de Crédit et d’Investissement (SNCI). Luxembourg is the fifth country to contribute to the Plan even before the European Fund for Strategic Investments has been formally set up, following the lead of Germany, Spain, France and Italy.
European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: "I am very happy to hear that Luxembourg will contribute to the Investment Plan. It is very encouraging that Member States are so committed to getting Europe investing again. I look forward to discussing the plan in more detail with Luxembourg's government, business leaders and students when I visit the country on the 27th of April".
On the 10th of March, EU finance ministers agreed on the Commission’s proposal for a Regulation on the European Fund for Strategic Investments (EFSI). The European Parliament will hold a committee vote on the Regulation on the 20th of April, after which negotiations between the co-legislators can begin, with a view to final adoption in June. Already by the summer, SMEs and some infrastructure projects will be able to benefit from pre-financing from the EIB, as was announced on 17 February.
National Promotional Banks have a crucial role to play in getting Europe investing again. They have the expertise to carry out the Investment Plan, and they ensure the most efficient use of public resources. Luxembourg is now the fifth country to announce a contribution through its National Promotional Bank: Germany announced in February that it would contribute €8 billion to the Investment Plan through KfW. Also in February, Spain announced a €1.5 billion contribution through Instituto de Crédito Oficial (ICO). In March, France announced a €8 billion pledge through Caisse des Dépôts (CDC) and Bpifrance (BPI), and Italy announced it will contribute €8 billion via Cassa Depositi e Prestiti (CDP).
The economic crisis brought about a sharp reduction of investment across Europe. That is why collective and coordinated efforts at European level are needed to reverse this downward trend and put Europe on the path of economic recovery. Adequate levels of resources are available and need to be mobilised across the EU in support of investment. There is no single, simple answer, no growth button that can be pushed, and no one-size-fits-all solution. The Commission is setting out an approach based on three pillars: structural reforms to put Europe on a new growth path; fiscal responsibility to restore the soundness of public finances and cement financial stability; and investment to kick-start growth and sustain it over time. The Investment Plan for Europe is at the heart of this strategy.