The InvestEU Fund is expected to mobilise at least €372 billion of public and private investment through an EU budget guarantee of €26.2 billion in support of investment by implementing partners such as the European Investment Bank (EIB) Group and other financial institutions, and increase their risk-bearing capacity. The financial partners are expected to contribute at least €6.55 billion (25%) in risk-bearing capacity. The guarantee is provisioned at 40%, meaning that €10.5 billion of the EU budget is set aside in case calls are made on the guarantee, the rest being contingent liability.
The budget guarantee is divided among the 4 policy windows as follows:
- Sustainable infrastructure: €9.9 billion
- Research, innovation and digitisation: €6.6 billion
- SMEs: €6.9 billion
- Social investment and skills: €2.8 billion
The InvestEU Fund also features the option of establishing Member State compartments for each policy area. It means that EU countries may contribute additional funds to the EU guarantee's provisioning by voluntarily channelling a part of their Cohesion Policy Funds to these compartments. In this way, EU countries benefit from the EU guarantee and its high credit rating, giving national and regional investments more firepower and higher multiplying effect.
In the Members State compartments, EU countries can also use InvestEU as a tool to implement their recovery and resilience plans under the Recovery and Resilience Facility (RRF), if they so wish.
InvestEU Implementing Partners
The guarantee available under the InvestEU Fund is implemented via selected financial partners, or ‘implementing partners’. The main partner is the EIB Group, which has successfully implemented and managed the European Fund for Strategic Investments (EFSI) since its launch in 2015, and which will be responsible to implement 75% of the EU Guarantee.
For the first time, the EU guarantee is open also to national promotional banks and international financial institutions, such as the European Bank for Reconstruction and Development (EBRD), the Council of Europe Development Bank (CEB) or the Nordic Investment Bank (NIB), as long as they become an ‘entrusted entity’ on the basis of EU Budget rules.